Gold held near $3,336 per ounce after earlier slipping to its weakest level since mid‑July, as gains were limited by stronger risk appetite following a framework deal between the U.S. and the EU. Under that agreement, a 15% tariff will be applied to most EU goods, a move that reduced the likelihood of a broader trade conflict and weighed on demand for traditional safe‑haven assets.
UBS analyst Giovanni Staunovo commented that the pact tempered demand for safe havens while also reducing inflation uncertainty. That combination could give the Federal Reserve more latitude to ease monetary policy later on, a development that typically supports gold prices over time.
Market participants are now focused on the Federal Reserve’s meeting later this week, where rates are widely expected to be held at the current 4.25%–4.50% range. Traders are watching for any signals about the timing and pace of future rate cuts, which will be a key driver for bullion in the coming months.