Gold prices were little changed on Tuesday, hovering near a three-week low, as easing fears of a global tariff war and a stronger dollar dampened bullion’s safe-haven appeal.
Spot gold held its ground at $3,311.33 per ounce, as of 0401 GMT. The precious metal hit its lowest level since July 9 in the previous session.
US gold futures held steady at $3,310.80.
“Gold trading at circa $3,300 or below is still getting the attention of buyers. While short-term market dynamics courtesy of trade deals and a stronger USD aren’t helping gold, looking further ahead there is still upside potential,” KCM Trade Chief Market Analyst Tim Waterer said.
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 percent 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.
The dollar index held near a more than one-week high, making gold costlier for buyers holding other currencies.
Investors are awaiting a set of US macroeconomic data this week, including inflation figures and the employment report, alongside the Federal Reserve’s two-day policy meeting beginning later in the day, with expectations largely pointing to rates being held steady.
