Gold falls as markets await trade deal announcements

Gold bars

Gold futures fell on Monday after US President Donald Trump signaled progress on multiple trade agreements and extended tariff exemptions for several countries until Aug. 1.

August gold futures dropped 0.7%, or $23.7, to $3,319.2 an ounce in early trading.

Spot gold was down 0.9%, or $29.22, at $3,307.93 an ounce at 8:27 a.m. Mecca time.

The US dollar index, which measures the greenback against a basket of six major currencies, held steady at 97.14 points.

Elsewhere in metals markets, September silver futures slipped 0.9% to $36.75 an ounce. Spot platinum fell 2.4% to $1,364.38, while spot palladium declined 1.9% to $1,116.14.

Expectations are growing that the Federal Reserve may slow the pace of interest rate cuts amid concerns that potential tariffs could add further inflationary pressure.

Futures trading showed markets no longer expect a rate cut in July and are now pricing in only two quarter-point cuts by year-end, according to Reuters.