Gold steadied as US-EU trade deal eased safe-haven demand and boosted investor sentiment.
US-EU trade deal lowers tariffs, easing tensions; US-China talks extend truce, reducing gold demand.
Markets await Fed meeting and US data; metals show mixed moves with platinum up and copper mostly steady.
Gold Prices Stabilize Amid Trade Optimism and Fed Anticipation
Gold prices steadied during Monday’s Asian trading session after slipping for three straight days. The recent U.S.-European Union trade agreement improved investor sentiment, diminishing the appeal of gold as a safe-haven asset.
Spot gold inched up 0.1% to 3,340.25 per ounce, while gold futures also rose 0.1% to 3,396.70 per ounce by early U.S. trading hours.
The precious metal had experienced two weekly drops, influenced by eased global trade concerns, including a U.S.-Japan pact.
Trade Developments Bolster Market Confidence
The fresh U.S.-EU deal, announced Sunday, sets a 15% tariff on many European imports—half the initially threatened tariff rate—thus avoiding a broader trade clash. This move has positively impacted market morale.
In parallel, senior U.S. and Chinese officials planned discussions in Stockholm on Monday to prolong their tariff truce by three months, with reports indicating no new tariff impositions are expected before the August 12 deadline. These trade advancements collectively dampened gold demand despite a relatively weak U.S. dollar, as funds shifted towards equities amid lowered uncertainty.
Focus Shifts to Federal Reserve Meeting and Economic Data
Market participants now eagerly await the Federal Reserve’s two-day policy meeting ending Wednesday, where interest rates are anticipated to remain steady between 4.25% and 4.50%. Investors will closely watch for any hints regarding future rate reductions.
Additionally, crucial U.S. economic indicators, including July employment statistics and PCE price index releases, are slated for later this week.
Meanwhile, other metals showcased mixed performances:
Silver futures remained quiet near 38.37 per ounce
Platinum futures soared 1.6% to 1,445.05 per ounce
London copper futures climbed 0.4% to 9,790.25 per ton; and U.S. copper futures dipped slightly by 0.2% to $5.775 a pound
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