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.

Carmakers led the rally in Japan, where the Nikkei Stock Average surged 3.5% to its highest level in a year.