FX.co ★ Gold Hovers Near 5-Week High

Gold prices slightly declined to approximately $3,380 on Tuesday, staying near a five-week peak attained in the previous session amidst ongoing uncertainty regarding President Donald Trump's August 1 tariff deadline. The focus now shifts to the EU-US trade discussions this week, as both parties strive to finalize a trade agreement before the deadline, when Trump has indicated he may impose a 30% tariff on the majority of the bloc’s exports. Concurrently, the EU is preparing a comprehensive set of potential retaliatory measures against the US, should an agreement not be reached. In terms of monetary policy, the European Central Bank is anticipated to maintain interest rates at 2.0% later this week, following a series of reductions. Meanwhile, the US Federal Reserve’s policy decision is set for announcement next week. Investors are keenly awaiting insights from Federal Reserve Chair Jerome Powell and Governor Michelle Bowman, expected later today, to gain a clearer understanding of the central bank’s policy direction.