Gold prices have dropped after the extension of the trade deadline between the United States and the European Union.
Gold prices witnessed a decline during Monday's trading on May 26, relinquishing their highest levels in two weeks, following U.S. President Donald Trump's decision to extend the deadline for reaching a trade agreement with the European Union until July 9.
This decision came as a retreat from the previous threat of imposing a 50% tariff on European imports starting from June 1.
According to available data, the price of gold in spot transactions decreased by 0.20% to reach $3349.03 per ounce, while gold futures dropped by 0.5% to $3348.10 per ounce.
It is worth noting that the yellow metal had recorded an increase of over 2% last Friday, supported by a wave of interest in safe-haven assets, after Trump recommended imposing a 50% tariff on EU imports, in addition to considering a 25% tariff on iPhones manufactured outside the United States.
On the other hand, the dollar index fell to its lowest level in about a month against a basket of currencies, making dollar-denominated gold less expensive for holders of other currencies, which may limit the decline pace, according to Reuters.
In a related context, prices of other precious metals showed mixed performance, with silver declining by 0.3% to $33.36 per ounce, while platinum rose by 0.1% to $1095.90. Palladium also increased by 0.8% reaching $1000.83 per ounce.
