July 24 (Reuters) - Gold prices fell for a second straight session on Thursday, as signs of easing global trade tensions dampened demand for safe-haven assets.
Spot gold was down 0.8% at $3,362.35 per ounce, by 9:41 a.m. ET (1340 GMT). U.S. gold futures dropped 0.9% to $3,367.40.
The market is optimistic about trade deals — first with the U.S. and Japan, and now possibly the EU, said Aakash Doshi of State Street Investment Management, adding that strong equities and low volatility have weighed on gold’s upside.
The U.S. and European Union were making progress toward a trade deal that may include a 15% baseline U.S. tariff on EU goods, with potential exemptions. The move comes shortly after Washington unveiled a separate agreement with Japan.
Meanwhile, U.S. President Donald Trump's unexpected visit to the Federal Reserve added a layer of uncertainty to the policy outlook. The White House confirmed the visit, which comes amid Trump's repeated criticism of Fed Chair Jerome Powell for not cutting rates more aggressively.
"Any potential interference with Fed independence is supportive for gold over the medium to long term," Doshi said.
The Fed is widely expected to leave rates unchanged at its July 29–30 meeting, but markets continue to price in a potential rate cut in September.
A safe-haven asset during times of economic uncertainties, gold also tends to do well in a low-interest rate environment.
On the data front, U.S. jobless claims unexpectedly fell last week, signalling a steady labour market despite sluggish hiring making it harder for the unemployed to find work.
Spot silver slipped 1% to $38.87 per ounce, palladium dropped 2.2% to $1,247.68 and platinum fell 0.8% to $1,400.18.
Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Susan Fenton
