Gold miners among biggest losers after spot price falls on EU-US trade deal
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The news: Gold miners were among some of the biggest losers in morning trade as demand for the haven asset fell following the announcement of a US-EU trade deal and expectations a trade war truce with China could be extended.
The numbers: At 11:42am AEST, Perseus Mining shares had slipped 3.7% to $3.35. Vault Minerals (-3.3%) and Genesis Minerals (-3.1%) were also big losers.
In the previous trading session, the spot price of gold fell 0.68% to USD3,314.67 ($5079.95). Losses were held on Tuesday morning, with the spot price only lifting 0.18% to USD3,320.47.
The context: The US dollar also strengthened overnight and is on track for its first monthly gain this year, putting pressure on bullion prices.
The EU and the US reached an agreement on Monday evening (AEST) that the US would set a 15% tariff rate on most EU goods, including automobiles, quelling fears of a globally disruptive trade war between the two economies.
US Commerce Secretary Howard Lutnick also confirmed on Tuesday morning (AEST) that it is “likely” that a trade war truce with China would be extended by 90 days. A pause on tariffs is otherwise scheduled to expire on 12 August.
Talks between US Treasury Scott Bessent and Chinese Vice Premier He Lifeng in Stockholm began on Monday.
The sources: Bloomberg, Bloomberg, Bloomberg, South China Morning Post
