Gold edges lower as Trump extends EU tariff deadline
KUALA LUMPUR: 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 per cent tariff from June 1.
Spot gold was down 0.3 per cent at US$3,346.59 an ounce, as of 0312 GMT. US gold futures fell 0.6 per cent to US$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 per cent 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 per cent to a two-week peak on Friday, supported by safe-haven inflows after Trump recommended 50 per cent tariffs on European Union imports from June 1 and said he was considering a 25 per cent 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.
On the geopolitical front, Russian forces launched a barrage of 367 drones and missiles at Ukrainian cities overnight, in the largest aerial attack of the war so far, killing at least 12 people and injuring dozens more, officials said.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.15 per cent to 922.46 tons on Friday from 923.89 tons on Thursday.
Spot silver was steady at US$33.46 an ounce, platinum edged 0.2 per cent lower to US$1,093 and palladium gained 0.7 per cent to US$999.90.
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