The gold market extended its losses for a fifth day, down more than 0.60% at the opening of Monday's trading as the European Union (EU) and the United States reached an agreement to cut tariffs from 30% to 15%.
At 9.15 am, gold prices were at $3,312.48, slightly lower since they opened early Tuesday in Asian trading.
The market mood returned to calm after the approval of the agreement, the US dollar rebounded with the US Dollar Index (DXY) rising 0.99% to 98.64 points.
US Treasury yields also showed positive signs with the 10-year note rising 2.5 basis points to 4.4410%.
Although the United States has reached agreements with several trading partners, negotiations with Canada and Mexico still lack progress and dragged the yellow metal asset to move lower.
Traders are focused on the Federal Reserve's (Fed) monetary policy decision, expected on July 30. Investors have set a 99% chance of a rate hike but are awaiting Fed Chairman Jerome Powell's press conference.
For now, the market will be watching several US data releases such as Gross Domestic Product (GDP), employment data, ISM Manufacturing PMI and Personal Consumer Expenditures (PCE) Price Index to gauge the Fed's inflation gauge.
