Gold price retreats to near 3-week low on US-EU trade deal

Gold prices retreated to a near three-week low on Monday as the freshly struck US-EU trade accord lifted risk sentiment and diminished the appeal of safe havens.Spot gold fell 0.7% to $3,313.57 per ounce as of 11:30 a.m. ET, having touched as low as $3,302.50 earlier in the session. US gold futures were down 0.8% to $3,307.60 per ounce in New York.The pullback follows a pivotal trade deal reached between the US and EU that fueled market optimism ahead a jam-packed week of earnings from Big Tech, economic data and a Federal Reserve meeting.That pact came on the heels of last week’s US-Japan agreement, while American and Chinese officials will resume talks in Stockholm on Monday with the aim of extending their trade truce by another 90 days.The US dollar index rose to a one-week high with the latest developments, making bullion more expensive for overseas buyers.“I think the more trade announcements we get, the more the dollar increases. These tariff deals are dollar friendly, lowering the allure of gold and driving the sell-off amid a risk-on sentiment,” said Marex analyst Edward Meir.However, US trade representative Jamieson Greer warned on Monday that no major breakthrough was expected with China, noting discussions would focus on monitoring and implementing existing commitments.“You’re not seeing a huge move on the downside in gold because the deals could still prove to be either difficult to implement or unrealistic,” Meir said.Meanwhile, the US Federal Reserve is expected to keep its benchmark rate in the 4.25%–4.50% range when its two-day meeting concludes on Wednesday.(With files from Reuters)Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com