Gold is trading in a narrow range on Monday, as economic data, easing trade tensions, and the fragility of the US Dollar continue to influence price action.

At the time of writing, Gold is trading near $3,310 per ounce, down from earlier highs near $3,345.

A US–EU trade deal has been announced, easing tariff risks and reducing demand for safe havens. The deal lowers the baseline tariff on most EU goods to 15%, down from the previously proposed 30%, in exchange for improved market access for US firms in digital services, agriculture, and clean energy.

The agreement, modeled on the US–Japan trade deal signed last week, aims to streamline industrial standards. The US Dollar firms on prospects of deals ahead of the FOMC meeting and avoids a disruptive tariff escalation.

It also includes a framework for cooperation on critical minerals, allowing EU exporters to benefit from the Inflation Reduction Act (IRA) incentives in the United States.

This breakthrough has boosted equity market sentiment, strengthened the US Dollar, and reduced demand for safe-haven assets such as Gold.

"We are building a stronger transatlantic economy based on fairness, access, and innovation," said Treasury Secretary Scott Bessent, who confirmed the deal following meetings with EU Trade Commissioner Valdis Dombrovskis.

The news adds pressure to XAU/USD, which continues to trade near $3,340, as investors rotate out of safe-haven assets amid growing optimism about global trade stability.

Source: Fxstreet