Gold settles lower as risk appetite improves

Gold bars

Gold prices fell at the close of Monday’s session, as improved risk appetite and easing demand for safe-haven assets followed a trade agreement between the United States and the European Union.

August gold futures declined 0.73%, or $24.40, to settle at $3,311.2 an ounce.

The drop coincided with a 1% rise in the US dollar index, which measures the greenback against six major currencies, to 98.00 points at 09:53 p.m. Mecca time.

The decline in safe-haven demand came after Washington and Brussels reached a trade agreement on Sunday under which the US will impose a 15% tariff on imports from EU countries.

The deal helped ease global trade tensions, especially after a similar agreement was reached last week between the US and Japan.

Meanwhile, the United States and China launched a new round of trade talks in Stockholm on Tuesday, which will continue for two days and could result in an extension of the current tariff truce beyond August 12.