Gold fell to a nearly three-week low on Monday as a trade agreement between the United States and the European Union boosted the dollar and risk sentiment, while investors awaited fresh rate policy cues from this week’s Federal Reserve meeting. Spot gold slid 0.6% to $3,316.03 per ounce at 11:36 a.m. ET (1536 GMT), after reaching its lowest level since July 9 earlier in the day. U.S. gold futures fell 0.7% to $3,313.2 per ounce.
“I believe that the more trade announcements we get, the stronger the dollar will become. These tariff arrangements favor the dollar, reducing the appeal of gold and pushing the sell-off amid a risk-on mentality,” said Marex analyst Edward Meir.
A weekend agreement between US President Donald Trump and the European Commission placed a 15% tax on EU goods, half the percentage first proposed, alleviating concerns of a bigger trade war. That accord followed last week’s US-Japan agreement, and US and Chinese officials will begin negotiations in Stockholm on Monday, hoping to prolong their trade truce by another 90 days.
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