Gold prices edged lower on Wednesday as a U.S.-Japan trade agreement announced by U.S. President Donald Trump lifted investor risk appetite, while a firmer dollar and higher Treasury yields added further pressure.

Japan is facing trade and political uncertainty after a historic defeat for the prime minister’s ruling party. Shigeru Ishiba is trying to buy time for his premiership following this past weekend’s election, which left the ruling bloc three seats short of a majority in the upper house.

The dollar rose against the euro due to U.S. trade talk progress but fell against the yen, influenced by Japan's interest rate prospects. Political uncertainty in Japan and upcoming ECB decisions also affected currency markets,

U.S. President Donald Trump's trade deal with Tokyo opens scope for the Bank of Japan to raise interest rates again this year, sources say, a prospect the central bank may start to telegraph by offering a less gloomy view on the economic outlook.

Japan Prime Minister Shigeru Ishiba considers resigning after finalizing a major US trade deal, amid political turmoil and a historic election loss for the ruling party.

Bank of Japan Deputy Governor Shinichi Uchida said Wednesday that a tariff deal between Japan and the United States is a

The U.S. dollar strengthened against the Swiss franc and euro but weakened versus the yen on Wednesday as positive sentiment from a new U.S. trade deal was offset by political uncertainty surrounding Japanese Prime Minister Shigeru Ishiba's future.

A deal with Japan and a potential deal with Europe follow months of uncertainty and will likely raise prices while offering a bit of clarity for global trade.

KOCHI: Japan’s trade agreement with the United States is a “very big progress” that reduces uncertainty over the economic outlook, Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday.