Gold Stabilizes Near Lowest Levels in Two Weeks After Trade Agreement Between America and Europe

SadaNews Economy - Gold prices stabilized in today’s Monday trading close to their lowest levels in nearly two weeks, influenced by an improvement in investor risk appetite following the announcement of a framework trade agreement between America and the European Union, which reduced demand for safe-haven assets.

The price of gold in spot transactions settled at $3,339.28 per ounce, after touching its lowest levels since July 17. U.S. gold futures remained stable at $3,340.00 per ounce.

Washington and Brussels reached a framework trade agreement yesterday, Sunday, which imposes a 15% tariff on most European goods, half the rate that America had previously threatened to impose. The agreement helped deescalate a broader trade confrontation between the two sides, which together account for nearly a third of global trade.

This agreement aligns with the basic elements of the previous framework agreement the U.S. made with Japan, but it leaves several issues unresolved, including tariffs on spirits, a matter that remains contentious on both sides of the Atlantic.

The agreement boosted investor confidence, reflected in the rise of U.S. stock market indices and European currencies.

In a related context, senior negotiators from the United States and China are expected to hold a meeting today in Stockholm, aiming to extend the existing tariff truce, just ahead of the upcoming deadline on August 12.

The U.S. dollar index fell by 0.1%, making gold priced in dollars less expensive for buyers outside the United States.

It is widely expected that the U.S. Federal Reserve will maintain the key interest rate in the range of 4.25% to 4.50% at the conclusion of its two-day meeting ending Wednesday. Fed Chairman Jerome Powell had previously indicated the necessity of waiting for more economic data before making new decisions regarding monetary policy.

U.S. President Donald Trump stated on Friday that his meeting with Powell was "positive," hinting at the possibility that the Fed chairman might be open to lowering interest rates in the upcoming period.

As for other precious metals, silver prices in spot transactions rose by 0.1% to $38.17 per ounce, platinum increased by 0.9% to $1,413.50, and palladium rose by 0.5% to $1,225.25.