Gold hits near two-week low after US, EU agree to tariff deal
The US Federal Reserve is widely expected to leave its benchmark interest rate in the 4.25 to 4.5 per cent range at the conclusion of a two-day policy meeting on Wednesday
[BENGALURU] Gold prices fell on Monday (Jul 28) to their lowest in nearly two weeks, as a framework trade agreement between the United States and European Union reduced appetite for safe-haven assets.
Spot gold was down 0.1 per cent at US$3,332.39 per ounce, as at 0020 GMT, after touching its lowest level since Jul 17.
US gold futures edged 0.1 per cent lower to US$3,332.50.
The US struck a framework trade agreement with the European Union on Sunday, imposing a 15 per cent import tariff on most EU goods, half the threatened rate, and averting a bigger trade war between the two allies that account for almost a third of global trade.
The agreement mirrors key parts of the framework accord reached by the US with Japan, but like that deal, it leaves many questions open, including tariff rates on spirits, a highly charged topic for many on both sides of the Atlantic.
Investor sentiment improved following the deal, with European currencies and US stock index futures trading higher.
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Senior US and Chinese negotiators will meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world’s top two economies, aiming to extend a truce, keeping sharply higher tariffs at bay.
The US dollar index eased 0.1 per cent, making greenback-priced bullion less expensive for overseas buyers.
The US Federal Reserve is widely expected to leave its benchmark interest rate in the 4.25 to 4.5 per cent range at the conclusion of a two-day policy meeting on Wednesday. Fed chair Jerome Powell has indicated the central bank should wait for further economic data before making any rate adjustments.
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US President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower rates.
Spot silver was up 0.1 per cent at US$38.17 per ounce, while platinum gained 0.9 per cent to US$1,413.50 and palladium rose 0.5 per cent to US$1,225.25. REUTERS
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