Gold (XAU/USD) held steady overnight, trading at $3,334 an ounce by 09:45 GMT, as markets digested news of a last-minute US-EU trade agreement that averted a looming tariff escalation.
Meeting at a golf resort in Scotland, President Donald Trump and European Commission President Ursula von der Leyen reached a deal on a fixed 15% baseline tariff for EU goods, halting a threatened jump to 30%. Trump described the pact as “probably the biggest deal ever reached in any capacity,” citing $750 billion in energy purchases from the US and $600 billion in fresh EU investment.
The agreement covers major industries including cars, pharmaceuticals, and semiconductors, lifting some of the pressure on global markets and dampening haven demand.
With the EU risk now defused, investor attention has shifted to fresh US-China trade talks kicking off in Stockholm. Without a breakthrough by Friday, August 1, tariff rates on dozens of countries, including Brazil and India, could spike from 10% to 50%, threatening fresh volatility across commodities and global trade.
Eyes are also on this week’s Federal Reserve meeting. Despite President Trump’s continued push for rate cuts, Fed Chair Jerome Powell has signalled no change is likely, citing lingering inflation risks tied to trade policy. A string of key US economic data releases this week could further stir gold markets, though the metal remains under pressure for now.