PRECIOUS-Gold hits near two-week low after US, EU agree to tariff deal
July 28 (Reuters) - Gold prices fell on Monday to their lowest in nearly two weeks, as a framework trade agreement between the United States and European Union reduced appetite for safe-haven assets.
FUNDAMENTALS
* Spot gold XAU= was down 0.1% at $3,332.39 per ounce, as of 0020 GMT, after touching its lowest level since July 17.
* U.S. gold futures GCcv1 edged 0.1% lower to $3,332.50.
* 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.
* The agreement mirrors key parts of the framework accord reached by the U.S. with Japan, but like that deal, it leaves many questions open, including tariff rates on spirits, a highly charged topic for many on both sides of the Atlantic.
* Investor sentiment improved following the deal, with European currencies and U.S. stock index futures trading higher.
* Senior U.S. and Chinese negotiators will meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce keeping sharply higher tariffs at bay.
* The U.S. dollar index .DXY eased 0.1%, making greenback-priced bullion less expensive for overseas buyers.
* The Federal Reserve is widely expected to leave its benchmark interest rate in the 4.25%-4.50% range at the conclusion of a two-day policy meeting on Wednesday. Fed Chair Jerome Powell has indicated the central bank should wait for further economic data before making any rate adjustments.
* U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower rates.
* Spot silver XAG= was up 0.1% at $38.17 per ounce, while platinum XPT= gained 0.9% to $1,413.50 and palladium XPD= rose 0.5% to $1,225.25.
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