Gold hovered around $3,330 per ounce on Monday, following three consecutive sessions of losses, as the newly announced US-EU trade deal sapped demand for safe-haven assets. The US and the EU on Sunday reached a broad agreement that includes a 15% tariff on most European goods, along with commitments involving hundreds of billions of dollars in investments in American industry. It mirrors key parts of the framework agreement the US struck with Japan last week. Meanwhile, investors are bracing for a busy week ahead, featuring a Federal Reserve policy meeting and a slew of economic data releases. The Fed is widely expected to keep rates unchanged, but investors will closely watch for any signals of a potential rate cut in September. Attention will also be on key labor market indicators, including JOLTS, ADP employment, and the nonfarm payrolls. The PCE price index—the Fed’s preferred measure of inflation—will also be monitored for any signs of upward pressure stemming from tariffs.
