July 7 (Reuters) - Gold prices dropped on Monday after
U.S. President Donald Trump signalled progress on multiple trade
agreements and announced extended tariff reprieve for several
countries, dampening demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold was down 0.3% at $3,323.71 per ounce, as
of 0028 GMT. U.S. gold futures also fell 0.3% to
$3,332.20.
* The U.S. is close to finalising several trade agreements
in the coming days and will notify other countries of higher
tariff rates by July 9, Trump said on Sunday, with the higher
rates scheduled to take effect on August 1.
* Trump announced in April a 10% base tariff on most
countries, with additional duties of up to 50%. He later
postponed the effective date for all but 10% of those tariffs
from July 9. The new date grants a three-week reprieve to most
affected nations.
* Concerns over tariff-driven inflation have jostled
expectations for Federal Reserve policy. Rate futures show
traders no longer expect a Fed rate cut this month and are
pricing in a total of just two quarter-point reductions by the
year-end.
* Last week, Trump signed into law a massive package of tax
and spending cuts at the White House, which as per nonpartisan
analysis will add more than $3 trillion to the nation's $36.2
trillion debt.
* The U.S. dollar index weakened 0.3% on Monday,
after registering its second consecutive weekly loss last week.
A lower dollar makes greenback-priced bullion affordable for
overseas buyers.
* Elsewhere, the first session of indirect Hamas-Israel
ceasefire talks in Qatar ended inconclusively, two Palestinian
sources familiar with the matter said early on Monday, adding
that the Israeli delegation didn't have a sufficient mandate to
reach an agreement with Hamas.
* Spot silver was steady at $36.94 per ounce,
platinum shed 0.3% to $1,388.06 and palladium
remain unchanged at $1,134.38.
DATA/EVENTS (GMT)
0600 Germany Industrial Output MM, Production
YY SA May
0600 UK Halifax House Prices MM, YY June
0645 France Reserve Assets Total June
(Reporting by Anmol Choubey in Bengaluru; Editing by Sherry
Jacob-Phillips)
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