Spot Gold hovered above a fresh 1 1/2-week low of $3,324.02 on Monday, as investor risk appetite improved following the announcement of a US-EU tariff deal.
The US and the EU reached a framework trade agreement over the weekend, which resulted in a 15% import tariff on the majority of EU goods. The agreement averted a larger trade war between the two major players in global trade.
Still, the deal left some major issues with no resolution, including tariffs on spirits.
Also, US and Chinese officials will hold a meeting in Stockholm this week to discuss an extension to the August 1st deadline for securing a trade deal.
“In the short term, we don’t expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data,” Jigar Trivedi, senior commodity analyst at Reliance Securities, was quoted as saying by Reuters.
The Federal Reserve is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% at its July 29th-30th meeting.
US President Trump said last week he held a positive meeting with Fed Chair Powell, indicating the central bank’s chief might be inclined to reduce interest rates.
Spot Gold was last up 0.05% on the day to trade at $3,338.89 per troy ounce.
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