Gold edges down on stronger dollar, easing tariff concerns

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.