Gold Slips as Dollar Strengthens and Trade Tensions Ease
Gold prices edged lower in early Tuesday trading as a stronger U.S. dollar and easing fears over global trade tariffs weighed on the precious metal. Investors are now turning their focus to the U.S. Federal Reserve’s policy meeting for clues on future interest rate directions.
Spot gold declined by 0.2% to $3,308.39 per ounce as of 00:24 GMT, after hitting its lowest level since July 9 in the previous session. U.S. gold futures also dipped 0.1% to $3,306.20.
In a positive development on the trade front, senior U.S. and Chinese economic officials met in Stockholm on Monday for over five hours of discussions aimed at resolving long-standing economic disputes. The talks raised hopes of extending the current trade truce between the world’s two largest economies by another three months.
Meanwhile, the U.S. reached a preliminary trade agreement with the European Union on Sunday and imposed 15% tariffs on most EU goods — a move seen as a step toward avoiding a broader trade war between the transatlantic partners, who together account for nearly one-third of global trade.
The U.S. dollar index held near its highest level in over a week, increasing the cost of gold for holders of other currencies and further pressuring demand.
The Federal Reserve’s two-day monetary policy meeting begins later on Tuesday, with broad expectations pointing toward a pause in interest rate changes.
Among other precious metals, spot silver slipped 0.1% to $38.12 per ounce. Platinum rose 0.4% to $1,395.75, while palladium dropped 0.7% to $1,237.88.
