Gold prices eased on Monday after US President Donald Trump set a July 9 deadline for a trade deal with the European Union, rescinding his earlier threat of a 50 percent tariff from June 1.
Spot gold was down 0.3 percent at $3,346.59 an ounce. US gold futures fell 0.6 percent to $3,345.70.
“There is (a) kind of element of relief in the marketplace after (the) pause on tariffs on the EU and we’re seeing gold weaken,” said Kyle Rodda, Capital.com’s financial market analyst.
However, the trend is still positive for gold because of the United States’ actions, which is impacting them as well and that could negatively impact the dollar and US assets, he said, adding that most of the central banks were moving away from the dollar to gold.
Trump on Sunday backed off his threat to speed up 50 percent tariffs on imports from the European Union, agreeing to extend his deadline for trade talks until July 9 after the head of the EU executive body said the bloc needed more time to “reach a good deal.”
Gold prices rose more than 2 percent to a two-week peak on Friday, supported by safe-haven inflows after Trump recommended 50 percent tariffs on European Union imports from June 1 and said he was considering a 25 percent tariff on any Apple iPhones made outside the United States.
The dollar index, meanwhile, fell to a nearly one-month low against its rivals. A weaker dollar makes greenback-priced gold less expensive for other currency holders.
