WASHINGTON (dpa-AFX) - Gold prices were coming under selling pressure on Tuesday as trade war fears ebbed and investors looked ahead to the release of key U.S. economic data later this week for clarity on the Federal Reserve's interest rate path.
The dollar's recovery from a five-week low hit on Monday also weighed on bullion. Spot gold fell 1.1 percent to $3,304 per ounce in early European trade while U.S. gold futures were down 1.9 percent at $3,331.09.
Risk sentiment improved somewhat after the Trump administration delayed a proposed 50 percent tariff on European imports from 1 June to 9 July.
European Commission trade chief Maros Sefcovic reported productive discussions with U.S. officials and said the European Union remains 'fully committed' to reaching a trade agreement with the United States.
The dollar index recovered some ground as President Trump's 'One Big Beautiful Bill' heads to the Senate floor for voting. The Bill is expected to raise the deficit by $3.8 billion, according to the Congressional Budget Office (CBO).
In economic releases, the durable goods orders report, the Dallas Fed manufacturing index and the Conference Board's consumer confidence report may garner attention later in the session.
Later this week, the release of the latest FOMC minutes on Wednesday and the PCE inflation data on Friday may provide fresh impetus for the Federal Reserve's interest-rate outlook.
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