On Monday, gold prices experienced a decline, reaching their lowest point in almost two weeks. This drop can be attributed to a framework trade agreement between the United States and the European Union, which diminished the demand for safe-haven assets. Spot gold experienced a decline of 0.1%, pricing at $3,332.39 per ounce as of 0020 GMT, following a dip to its lowest point since July 17.

U.S. gold futures experienced a slight decline of 0.1%, settling at $3,332.50. The U.S. established a framework trade agreement with the European Union on Sunday, instituting a 15% import tariff on the majority of EU goods – which is half of the initially threatened rate – thereby preventing a more significant trade conflict between the two partners that collectively represent nearly a third of global trade.

The agreement reflects significant elements of the framework accord established by the U.S. with Japan; however, similar to that arrangement, it leaves numerous uncertainties unresolved, particularly regarding tariff rates on spirits, a contentious issue for stakeholders on both sides of the Atlantic. Following the deal, there was a notable improvement in investor sentiment, as evidenced by the appreciation of European currencies and the upward movement in U.S. stock index futures.

Senior negotiators from the United States and China are scheduled to convene in Stockholm on Monday to address enduring economic disagreements that lie at the heart of the trade conflict between the two largest economies globally, with the objective of prolonging a ceasefire that has thus far prevented the imposition of significantly elevated tariffs. The U.S. dollar index experienced a slight decline of 0.1%, which effectively reduced the cost of dollar-denominated bullion for international purchasers.

The Federal Reserve is anticipated to maintain its benchmark interest rate within the 4.25%-4.50% range following the conclusion of a two-day policy meeting on Wednesday. Fed Chair Jerome Powell has suggested that the central bank ought to exercise patience and await additional economic data prior to implementing any rate changes. U.S. President Donald Trump indicated on Friday that his meeting with Powell was constructive, implying that the Fed chair may be open to the possibility of reducing interest rates. Spot silver experienced a modest increase of 0.1%, reaching $38.17 per ounce. In contrast, platinum saw a rise of 0.9%, now priced at $1,413.50, while palladium advanced by 0.5%, settling at $1,225.25.