Spot Gold eased from a 2-week peak of $3,366.00 on Monday, as US President Donald Trump set a July 9th deadline for reaching a trade agreement with the EU.
The yellow metal rose almost 2% last Friday, after Trump announced that he was recommending a flat 50% tariff on all products imported from the European Union, effective June 1st. Trump also stated that discussions with the European Union were “going nowhere.”
Yet, the US President rescinded his tariff threat over the weekend and extended his deadline for trade negotiations until July 9th, after the head of the EU executive body said the bloc required more time for a “good deal.”
“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,” Kyle Rodda, financial market analyst at Capital.com, was quoted as saying by Reuters.
But, the trend remains positive for the metal because of the United States’ actions, Rodda added.
Meanwhile, the US Dollar Index plumbed a fresh one-month trough, being last down 0.33% to 98.779. A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Spot Gold was last down 0.59% on the day to trade at $3,338.19 per troy ounce.
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