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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