FX.co ★ Gold Pares Gains as USD Strengthens on Trade Deal Ahead of Fed

Gold's initial gains receded, settling around $3,340 on Monday owing to a more robust dollar after the US-EU trade agreement was unveiled. The agreement introduces a 15% tariff on several European goods, including automobiles and computer chips, with the EU pledging to purchase $750 billion in US energy and additional military equipment. At the same time, US and Chinese negotiators are scheduled to convene later today to discuss extending the current trade truce and avoiding the imposition of new tariffs. Market participants are also keenly anticipating the Federal Reserve's policy announcement on Wednesday, seeking insights into potential future interest rate adjustments. Furthermore, the market's prudence is compounded by an eventful economic calendar, highlighting critical US labor statistics such as nonfarm payrolls, ADP employment, and JOLTS job openings. Additionally, the PCE price index will be under scrutiny for indications that tariffs could be contributing to inflationary pressures.