Gold edges down on stronger US dollar, easing tariff concerns
[BENGALURU] Gold prices edged lower in early trade on Tuesday (Jul 29), weighed down by easing concerns over a global tariff war and a stronger US dollar, while investors focussed on the US Federal Reserve policy meeting for interest rate clues.
Spot gold was down 0.2 per cent at US$3,308.39 per ounce, as at 0024 GMT. Bullion hit its lowest level since Jul 9 in the previous session.
US gold futures edged 0.1 per cent lower to US$3,306.20.
Top US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes at the centre of a trade war between the world’s top two economies, seeking to extend a truce by three months.
The US struck a framework trade agreement with the European Union on Sunday, imposing a 15 per cent import tariff on most EU goods, half the threatened rate, and averting a bigger trade war between the two allies that account for almost a third of global trade.
France denounced the agreement as “submission” on Monday, while other EU nations supported it, despite its perceived imbalance, to avoid a costly trade conflict with Washington.
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The US dollar index held near a more than one-week high, making gold costlier for buyers holding other currencies.
The Fed’s two-day policy meeting begins later in the day, with expectations widely pointing to rates being held steady.
Markets see a 62 per cent chance of a rate cut in September, according to the CME FedWatch tool.
US President Donald Trump set a new deadline on Monday of 10 or 12 days for Russia to make progress towards ending the war in Ukraine or face consequences.
Spot silver was down 0.1 per cent at US$38.12 per ounce, while platinum gained 0.4 per cent to US$1,395.75 and palladium fell 0.7 per cent to US$1,237.88. REUTERS
