Gold prices fell for a second straight session on Thursday (July 25), as signs of easing global trade tensions dampened demand for safe-haven assets.

Spot gold fell 0.5% to $3,370.69 an ounce, as of 1:45 PM ET (5:45 PM GMT). US gold futures closed 0.7% lower at $3,373.50. Markets are optimistic about a trade deal—first with the US and Japan, and now possibly with the European Union, said Aakash Doshi of State Street Investment Management, adding that strong equities and low volatility have weighed on gold prices.

The US and EU are making progress toward a trade deal that could include a base US tariff of 15% on EU goods, with potential exemptions. This move comes shortly after Washington announced a separate agreement with Japan.

Meanwhile, US President Donald Trump's surprise move to visit the Federal Reserve later in the day adds uncertainty to the policy outlook. This comes amid Trump's repeated criticism of Fed Chairman Jerome Powell for not cutting interest rates more aggressively. "Any potential intervention in the Fed's independence will support gold in the medium to long term," Doshi said.

The Fed is widely expected to keep interest rates unchanged at its July 29-30 meeting, but markets continue to price in a potential rate cut in September. As a safe haven asset during times of economic uncertainty, gold also tends to perform well in a low interest rate environment.

Data-wise, US jobless claims unexpectedly fell last week, signaling a stable labor market, although slow hiring is making it more difficult for the unemployed to find work. Spot silver fell 0.7% to $39.02 per ounce, palladium fell 3.5% to $1,234, and platinum fell 0.5% to $1,405.15. (alg)

Source: Reuters