Gold fell to a near three-week low on Monday as a US-European Union trade accord lifted the dollar and risk sentiment, while investors awaited fresh cues on rate policy from this week's Federal Reserve meeting, reports Reuters.
Spot gold fell 1.0 per cent to $3,304.87 per ounce as of 10:10 a.m. ET (1410 GMT), touching its lowest level since July 9. US gold futures were down 0.6 per cent at $3,320.20 per ounce.
The US dollar index rose to a one-week high, making bullion more expensive for overseas buyers.
"I think the more trade announcements we get, the more the dollar increases. These tariff deals are dollar friendly, lowering the allure of gold and driving the sell-off amid a risk-on sentiment," said Marex analyst Edward Meir.
A weekend deal between US President Donald Trump and the European Commission imposed a 15 per cent tariff on EU goods, half the rate initially threatened, easing fears of a broader trade war.
That pact came on the heels of last week's US-Japan agreement, while US and Chinese officials will resume talks in Stockholm on Monday, aiming to extend their trade truce by another 90 days.
However, a US trade representative said no major breakthrough was expected with China, noting discussions would focus on monitoring and implementing existing commitments.
Gold tends to do well in a low-interest-rate environment.
Elsewhere, spot silver was down 0.2 per cent at $38.05 per ounce, while platinum fell 1.8 per cent at $1,375.88 and palladium gained 0.5 per cent to $1,226.25.
