WASHINGTON (dpa-AFX) - Gold edged higher on Tuesday as optimism around the U.S.-EU trade deal faded, and investors looked ahead to a Federal Reserve meeting for clarity on the U.S. interest-rate trajectory.
Spot gold edged up by 0.3 percent to $3,325.32 per ounce in European trade while U.S. gold futures were up 0.4 percent at $3,381.05.
The EU-U.S. trade deal met with gloomy reactions from many European leaders, with Germany and France slamming the draft trade agreement as unequal and damaging.
As the August 1 deadline nears, U.S. President Donald Trump said that countries refusing to negotiate separate trade deals could face tariffs ranging from 15 percent to 20 percent, well above the 10 percent rate set in April.
Geopolitical tensions were also in focus after Trump set a new deadline of 10-12 days for Russia to reach a swift truce with Ukraine or face potential economic penalties.
On the economic front, key inflation and labor market data will be in the spotlight this week, with the July reading of the personal consumption expenditures (PCE) index due to be released on Thursday, followed by the crucial jobs report on Friday.
The Federal Reserve is seen holding rates steady between 4.25 percent and 4.50 percent on Wednesday, with investors looking for hints on whether a September cut is likely.
The Bank of Japan is set to hold off raising interest rates on Thursday but may offer a less gloomy view on the outlook.
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