Gold Prices Steady After Losses as US-EU Trade Deal Lifts Risk Appetite
Gold prices remained steady during Asian trading on Monday after falling for three straight sessions. A newly announced trade deal between the United States and the European Union boosted investor confidence and reduced demand for safe-haven assets like gold.
Traders also stayed cautious ahead of the upcoming Federal Reserve interest rate decision later this week. The Fed is widely expected to keep rates unchanged.
Gold Moves Slightly Higher in Early Trade
Spot gold rose 0.1% to $3,340.25 per ounce. Gold futures saw a similar 0.1% gain, trading at $3,396.70 per ounce as of 01:35 ET (05:35 GMT).
Gold posted its second weekly decline on Friday, weighed down by easing global trade tensions following a separate U.S.-Japan trade agreement.
US-EU Trade Agreement Boosts Market Confidence
The U.S.-EU deal, announced Sunday, introduced a 15% tariff on most European goods entering the U.S.—half the originally proposed rate. This move helped avert a deeper trade dispute and lifted overall market sentiment.
Meanwhile, high-level trade talks between the U.S. and China are set to begin in Stockholm on Monday. A report from the South China Morning Post said both sides plan to extend their current tariff truce by 90 days, with no new tariffs expected before the August 12 deadline.
This growing optimism weighed on gold prices, even though the U.S. dollar remained soft.
Analysts noted that easing trade tensions reduced economic uncertainty. As a result, investors shifted funds into riskier assets like equities, which weakened demand for gold.
Focus Shifts to Fed Meeting and US Economic Data
Markets now turn to the Federal Reserve’s two-day meeting, ending on Wednesday. The central bank is expected to keep interest rates within the current 4.25% to 4.50% range. Investors will closely monitor the Fed’s tone for clues on future rate cuts.
Later in the week, key U.S. economic indicators are due. These include the July jobs report and the PCE price index—both closely watched by the Fed for inflation trends.
Other Precious Metals Mixed; Platinum Gains
The U.S. Dollar Index remained subdued on Monday after posting weekly losses.
Silver futures were flat at $38.368 per ounce. Platinum futures, however, jumped 1.6% to $1,445.05 per ounce.
In base metals, benchmark copper futures on the London Metal Exchange rose 0.4% to $9,790.25 per ton. U.S. copper futures edged down 0.2% to $5.775 per pound.
