Gold retreats from two-week high as Trump extends EU tariff deadline

Gold prices slipped from a two-week high on Monday after U.S. President Donald Trump set a July 9 deadline for a trade deal with the European Union, rescinding his earlier threat of a 50% tariff from June 1.

FUNDAMENTALS

* Spot gold was down 0.5% at $3,339.13 an ounce, as of 0101 GMT. * U.S. gold futures fell 0.8% to $3,337.40. * Trump on Sunday backed off his threat to speed up 50% 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% to a two-week peak on Friday, supported by safe-haven inflows after Trump recommended 50% tariffs on European Union imports from June 1 and considering a 25% tariff on any Apple iPhones made outside the United States.

* The dollar index, meanwhile, fell to a near one-month low against its rivals. A weaker dollar makes greenback-priced gold less expensive for other currency holders.

* 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. * Israeli military strikes killed at least 30 Palestinians across the Gaza Strip on Sunday, including a senior rescue service official and a journalist, local health authorities said. * Trump said that U.S. negotiators had “very good” talks with an Iranian delegation over the weekend as he seeks a deal to prevent Tehran from developing a nuclear weapon.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 922.46 tons on Friday from 923.89 tons on Thursday. * Spot silver eased 0.3% to $33.36 an ounce, platinum edged 0.1% higher to $1,095.90 and palladium gained 0.8% to $1,000.83. DATA/EVENTS (GMT) 0500 Japan Leading Indicator Revised March 1000 EU Consumer Confid. Final May.