Gold prices hold losses as US-EU trade deal eases safe‑haven demand
Gold prices held firm in Asian trade on Monday following three consecutive days of declines, as a new trade deal between the United States and the European Union eased risk appetite and curbed demand for the safe‑haven asset, News.az reports citing Investing.
Traders also exercised caution ahead of the Federal Reserve interest rate decision due this week, where the central bank is expected to hold rates unchanged.
Spot Gold edged up 0.1% to $3,340.25 an ounce, while Gold Futures also gained 0.1% to $3,396.70/oz by 01:35 ET (05:35 GMT).
Gold saw two consecutive weekly declines on Friday after a key U.S.-Japan trade eased global trade tensions.
US-EU deal sparks trade optimism; Fed decision looms
The U.S.–EU agreement announced Sunday imposed a 15% tariff on most European goods entering the U.S., half of the previously threatened rate, helping avert a full‑scale trade conflict and boosting market sentiment.
Meanwhile, top U.S. and Chinese officials were set to meet in Stockholm on Monday to discuss extending their tariff truce by three months. A South China Morning Post report stated that both sides have no plan to impose new duties ahead of the August 12 deadline.
Analysts noted that progress toward a trade truce lowered uncertainty, drawing funds into equities and reducing bullion’s attraction.
Attention now turns to the Federal Reserve’s two‑day meeting ending Wednesday.
Markets also await key U.S. economic data releases later in the week, including July jobs figures and PCE price index data.
Metal markets subdued; platinum jumps
The US Dollar Index remained subdued on Monday after sharp weekly losses.
Silver Futures were largely muted at $38.368 per ounce, while Platinum Futures jumped 1.6% to $1,445.05/oz.
Meanwhile, benchmark Copper Futures on the London Metal Exchange rose 0.4% $9,790.25 a ton, while U.S. Copper Futures edged 0.2% lower to $5.775 a pound.
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