Gold edges down on stronger dollar, easing tariff concerns

Synopsis

Gold prices experienced a slight dip due to receding concerns about a global tariff war and a stronger U.S. dollar. Investors are keenly awaiting the Federal Reserve's policy meeting for insights into potential interest rate adjustments. Trade discussions between the U.S. and China, along with a trade agreement between the U.S. and EU, are also influencing market sentiment.

Gold prices edged lower in early trade on Tuesday, weighed down by easing concerns over a global tariff war and a stronger U.S. dollar, while investors focussed on the Federal Reserve policy meeting for interest rate clues.

FUNDAMENTALS

* Spot gold was down 0.2% at $3,308.39 per ounce, as of 0024 GMT. Bullion hit its lowest level since July 9 in the previous session. * U.S. gold futures edged 0.1% lower to $3,306.20.

* Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months.

* The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade.

* France denounced the agreement as "submission" on Monday, while other EU nations supported it, despite its perceived imbalance, to avoid a costly trade conflict with Washington.

* The U.S. dollar index held near a more than one-week high, making gold costlier for buyers holding other currencies.

* The Fed's two-day policy meeting begins later in the day, with expectations widely pointing to rates being held steady.

* Markets see a 62% chance of a rate cut in September, according to the CME FedWatch tool.

* U.S. President Donald Trump set a new deadline on Monday of 10 or 12 days for Russia to make progress towards ending the war in Ukraine or face consequences.

* Spot silver was down 0.1% at $38.12 per ounce, while platinum gained 0.4% to $1,395.75 and palladium fell 0.7% to $1,237.88. DATA/EVENTS (GMT) 1000 France Unemployment Class-A SA June 1400 U.S. Consumer Confidence July.

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