NEW YORK: Gold prices steadied on Monday, with gains curbed by improved risk sentiment following a trade deal between the United States and the European Union, while investors looked forward to the US Federal Reserve’s policy meeting later this week.
Spot gold was flat at $3,335.87 per ounce as of 1035 GMT, after touching its lowest level since July 17 earlier in the day. US gold futures were unchanged at $3,335.30 per ounce.
Washington struck a framework trade agreement with the European Union in Scotland on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war. Risk appetite in the wider financial markets rose with European shares advancing to a four-month high, led by gains in auto and pharmaceutical stocks.
Meanwhile, talks between the US and China are scheduled in Stockholm on Monday amid expectations of another 90-day extension to the trade war truce between the world’s top two economies.