FX.co ★ Gold Holds Decline as US and EU Reach a Deal

Gold stabilized around $3,330 per ounce on Monday after three consecutive declines, impacted by the recent US-EU trade agreement which diminished the appeal of safe-haven assets. This new trade deal, announced on Sunday, entails a 15% tariff on most European goods along with commitments to invest hundreds of billions of dollars in American industries, closely resembling the framework agreement established between the US and Japan the previous week. Looking ahead, investors are preparing for an eventful week that includes a Federal Reserve policy meeting and a series of economic data announcements. Although the Federal Reserve is widely anticipated to maintain current interest rates, investors will be keenly observing for any indications of a potential rate reduction in September. Additionally, key labor market indicators such as JOLTS, ADP employment, and nonfarm payrolls will be under scrutiny. The PCE price index, the Federal Reserve’s preferred inflation gauge, will also be closely monitored for signs of upward pressure resulting from the imposed tariffs.