FX.co ★ Gold Falls as Traders Weigh Trade Developments

Gold prices declined to approximately $3,310 per ounce on Monday, reversing some of the gains achieved in the previous week. This movement occurred as investors evaluated the latest developments in trade ahead of the impending US tariff deadline. Numerous major US trade partners are striving to finalize agreements or secure extensions, with Treasury Secretary Scott Bessent hinting that negotiations might be prolonged, granting nations without a settled deal by July 9 an additional three weeks to continue discussions. Indicators of advancement in multiple trade agreements and the potential extension of tariff deadlines have diminished gold's attractiveness as a safe-haven asset. Nevertheless, gold's decline was somewhat contained due to President Donald Trump's reaffirmation that heightened tariffs would be imposed on countries that fail to finalize agreements by the deadline, with comprehensive reciprocal tariffs slated to begin on August 1. Concurrently, investors are also monitoring updates concerning US fiscal policy, while the robust labor data released last week has dampened expectations for a rate cut by the Federal Reserve in July.