Gold falls 1% as US-EU deal boosts risk appetite ahead of Fed meeting
Spot gold fell 1% to $3,304.87 per ounce as of 10:10 a.m. ET (1410 GMT), touching its lowest level since July 9.
U.S. gold futures were down 0.6% at $3,320.20 per ounce.
The U.S. dollar index (.DXY), opens new tab rose to a one-week high, making bullion more expensive for overseas buyers.
"I think the more trade announcements we get, the more the dollar increases. These tariff deals are dollar friendly, lowering the allure of gold and driving the sell-off amid a risk-on sentiment," said Marex analyst Edward Meir.
A weekend deal between U.S. President Donald Trump and the European Commission imposed a 15% tariff on EU goods, half the rate initially threatened, easing fears of a broader trade war.
That pact came on the heels of last week's U.S.-Japan agreement, while U.S. and Chinese officials will resume talks in Stockholm on Monday, aiming to extend their trade truce by another 90 days.
However, a U.S. trade representative said no major breakthrough was expected with China, noting discussions would focus on monitoring and implementing existing commitments.
"You're not seeing a huge move on the downside in gold because the deals could still prove to be either difficult to implement or unrealistic," said Meir.
The U.S. Federal Reserve is expected to keep its benchmark rate in the 4.25%–4.50% range when its two-day meeting concludes on Wednesday.
Markets, meanwhile, continue to price in a potential September rate reduction.
Gold tends to do well in a low-interest-rate environment.
Elsewhere, spot silver was down 0.2% at $38.05 per ounce, while platinum fell 1.8% at $1,375.88 and palladium gained 0.5% to $1,226.25.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
6 minutes ago
- Daily Mail
Venice should charge visitors £87 a DAY to reduce 'tide' of tourists who 'don't even know what culture is', local business leader demands
Venice has made five million Euro (£4.7million) with a daily five Euro (£4.35) tourist tax this summer, but some businesses want it raised to clamp down on 'unclassy' visitors. The charge was introduced in April as part of a trial run following one last year and was payable over 54 selected days until last Sunday by day trippers who visited the iconic Italian lagoon city. Officials said that the charge, payable by visitors who arrived for the day between 8.30am and 4pm, was paid by 720,000 compared to 485,000 last year. However, Setrak Tokatzian, president of the Venice's historic Piazza San Marco Association of small businesses, has urged council chiefs to up the tax to an eye-watering 100 Euro (£87). Mr Tokatzian, who runs a jewellery shop in the heart of Venice, said it would be worth it because many of the 30million people who visit the city each year are lowering the tone of the city. In what might be considered a rather snobby interview with the local Corriere del Veneto, he said: 'Every day I see rivers of people coming to the city, but without a goal. 'They move from side to side, often guided by tour operators, climb gondolas, and I'm sorry to say but this sort of tourism is obscene. 'There is a total over explosion of tourists, these people wander around and don't even bother going into any of the shops, they don't even know where they are going. 'No one goes into any of the designer stores and bus branded goods, they just buy fake goods from the street sellers. 'But it's not just that. I have also heard from hoteliers who tell me there has been a drop in overnight guests and the restaurants tell me the same thing. 'I myself have seen people, when they do stop to eat something, divide up a plate of pasta or share a drink. People line up at fountains to get water instead of buying bottles from a shop. 'Where are the classy people, the ones interested in the city and who really bring something to it?' Earlier his year Venice was the venue for billionaire Amazon boss Jeff Bezos's wedding to Lauren Sanchez. And Mr Tokatzian was one of many including the mayor, who hit out at critics of the event. He added of over tourism: 'I think it is a widespread phenomena throughout Italy, from what I have head from counterparts in Milan and other cities, it's all the same. 'In St Mark's Square no one stops to look in the shop windows, a tide of people just arrive from the mainland in the morning on boats and then go home in the afternoon, without even appreciating where they have been. 'I personally believe we need to put some sort of threshold on this over tourism, and charge these people 100 Euro. 'There are tides of people coming in from the campsites nearby every day with wrist bands on and they don't even know what culture is, and you can see it in them when they arrive. 'And then what's worse is that they leave without buying a thing, except from the street hawkers who in my eyes make money illegally, and this is a daily battle for us.' He went on: 'The tourists come; they don't buy anything but they are happy for someone to take their picture feeding grains to the pigeons in in St Mark's Square.' The idea was dismissed by consumer group, Assoutenti, with spokesman Gabriele Melluso saying it was 'madness and unworkable'. He said: 'The truth, and the businesses all know it, is that tourists don't buy in Venice because the prices are too high. 'To have a bite to eat in a cafe or restaurant in the city of Venice, in one of the tourist areas, is to pay some of the highest prices in Italy and that's why when people do visit, they try and save money. 'To combat over tourism in Venice and Italy, we don't need unrealistic taxes that transform the beauty of our country into something just for the rich but a well booking system and better PR.' No one from Venice City Council was immediately available to discuss the idea.
BreakingNews.ie
6 minutes ago
- BreakingNews.ie
Politics watch: Taoiseach defends EU-US trade deal amid criticism
Here, we have a look at the topics likely to dominate political discourse in the week to come. EU-US trade deal The Taoiseach has welcomed a new trade agreement between the US and EU as having 'avoided a damaging trade war'. Advertisement Taoiseach Micheál Martin also said there is 'much to be negotiated' following what he termed a 'framework agreement'. Speaking to the media in Dublin on Monday, Mr Martin said it 'opens up the prospect of more significant strategic collaboration between the US and Europe on quite a number of issues'. 'It also avoids further escalation, or indeed a trade conflict, which would be very, very damaging to the economies of the United States and of the European Union,' he said. 'It's important to say that Europe never sought tariffs, or never sought to impose tariffs, and fundamentally, we are against tariffs: we believe in an open trading economy.' Mr Martin said it is a very different situation than before April 1st. Advertisement 'New realities are in play and so at a broader level, the stability and predictability that this agreement brings is important for businesses, is important for consumers and indeed patients when it comes to the manufacturing and distribution of medicines,' he said. 'In essence, we have avoided a trade conflict here which would have been ruinous, which would have been very damaging to our economy, and to jobs in particular. 'The challenge now for Europe is to work on its own inefficiencies, to reduce barriers within the single market, to press ahead more ambitiously and more proactively on trade diversification and trade deals with other countries that would facilitate that market diversification that is required. 'Meanwhile, there is much to be negotiated in the aftermath of this framework agreement.' Advertisement Asked about mixed reactions to the deal in Europe, Mr Martin said: 'Nobody is welcoming tariffs with open arms. 'I think we've been consistent in saying that we don't agree with tariffs, that we prefer if there weren't tariffs, but we have to deal with realities. 'I understand people criticising, but given the balance and the options here… in my view, I would appreciate the work of the (European) Commission in this regard, and the avoidance of a trade war is preferable, in my view, and that's the key issue.' Businesses have had a mixed reaction to the agreement. Advertisement In a statement, business lobby group Ibec said the deal will still leave a "substantial burden" for some industries. Ibec chief executive Danny McCoy said: "Today's trade agreement between the US and EU brings an end to a significant amount of uncertainty for some businesses. However, a 15 per cent tariff still represents a substantial burden for many industries. Sectors which rely heavily on the US market and operate within small margins, will once again be significantly impacted by an additional 5 per cent tariff, on top of what they have already had to absorb over the past several months and well in excess of the 1 per cent effective tariff which existed before April." Mr McCoy added: "Our message to the Government, as it was with the 10 per cent tariff, is that the most exposed sectors will require support similar to the interventions provided as a response to Brexit. "It is important to note that the details are still emerging and will only be worked out as today's framework is fleshed out. These details will be critically important for Ireland. Pharmaceuticals and Semiconductors which equate to 75 per cent of Ireland-US trade are, we understand, included in the 15 per cent deal. However, there is still a question around the stability of that rate over both the short and long-term in the face of ongoing Section 232 investigations." Advertisement Speaking on RTÉ's News at One, IEA chief executive Simon McKeever: "I think the EU was backed into a very difficult negotiating position because of the lack of investment in defence and security spending over the last number of years. It's totally dependent on the US in that space. "I don't think it's a good deal. I don't think it's a great deal and for Irish businesses, they're now faced with a 15 per cent tariff they weren't faced with before and they'll need to deal with that. "I think that we were negotiating with one if not two hands tied behind our back. I don't think we were in a very strong position because of the defence issue." He called on Tánaiste Simon Harris to get the trade forum together urgently. "Companies are going to need help. We have called for a tariff adjustment fund, which is based on the Brexit adjustment reserve and was brought out in 2021. "Irish companies are going to need time to get to grips with this. I'm calling on Simon Harris to please get the trade forum together tomorrow or on Wednesday, because we need to get back to our members with this." French prime minister François Bayrou called the deal a "dark day" for Europe. 'It is a dark day when an alliance of free peoples, united to assert their values and defend their interests, resigns itself to submission,' Mr Bayrou wrote on X. Michael D Higgins tells EU presidents silence on Gaza would be a 'moral failure' President Michael D Higgins has written to other European presidents to say that silence on Gaza would be a moral failure. He said that while Israel has a right to defend itself, they cannot let the 'horrific' attack on October 7th, 2023, 'provide a licence or cover' for the scale of civilian deaths in Gaza. Mr Higgins wrote the letter to the Arraiolos Group, an informal organisation representing presidents of EU countries which meets once a year. The political forum is named after the Portuguese town where the first meeting took place in 2003. 'I am sure that we all remember with horror the moment when news broke of the horrific atrocities carried out by Hamas as we returned from our meeting of the Arraiolos Group in Porto in October 2023,' he said. 'These atrocities were rightly condemned by all member states. We were not silent and called for the unconditional release of all hostages. 'While Israel has a right to defend itself, we cannot let that horrific event provide a licence or cover for the totally unacceptable loss of life, including from malnutrition and dehydration by infants and mothers that is now being perpetrated in Gaza.' Abroad The EU-US trade deal was announced during US president Donald Trump's visit to Scotland, where he appeared alongside European Commission president Ursula von der Leyen. He also appeared with UK prime minister Keir Starmer at a press conference on Monday, where they addressed a range of topics. Mr Trump said the focus in Gaza was getting food to people amid ongoing Israeli blockades of aide that have left the population on the brik of mass starvation. Mr Trump also suggested he will bring forward a deadline for Russia to agree a ceasefire with Ukraine.
The Sun
6 minutes ago
- The Sun
Premier League side SELL their own women's team to bolster kitty for massive splurge and want Jack Grealish transfer
EVERTON have reportedly SOLD their women's team to their sister company - in a move that could help raise funds for transfers. Companies House shows that Everton Football Club Women Ltd has been transferred to a company called Roundhouse Capital Holdings. 2 According to The Times, records show its controlled by Everton's American businessman owner Dan Friedkin. Roundhouse is the company that The Friedkin Group used to buy Everton during their takeover last December. The move is said to ensure the women's team is a standalone entity that can attract investment from America. But, that profit will help comply with the Premier League's Profitability and Sustainability Rules. Everton become the third Premier League club to take advantage of a law that allows clubs to sell assets such like the women's team to related companies and register that as a profit for PSR calculations. The Premier League requires that fees paid for internal assets are reasonable - with Chelsea and Aston Villa also doing so. Everton were previously deducted six points for a PSR breach in the 2021-22 season and two points in 2022-23. But the Toffees did spend over £800MILLION on a new stadium which they move into this season. CASINO SPECIAL - BEST CASINO BONUSES FROM £10 DEPOSITS Everton took out two new loans in February with US firms Aramark Limited and Glas Trust Corporation. The original estimate for the stadium — which took four years to build — was £500m. Neom Hijack Zeze Deal from Premier League Rivals The old Goodison Park has been scaled down and will now be used by the women's team. Everton are looking to add to their squad this summer and are linked with a move for Manchester City's £100m wantaway Jack Grealish. According to Ben Jacobs, the Merseysiders want a loan and are unlikely to consider to a permanent move unless Grealish lowers his £300,000-a-week wages. 2
