Gold prices drop as Trump signals trade deals, extends tariff reprieve

July 7 (Reuters) - Gold prices dropped on Monday after U.S. President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieve for several countries, dampening demand for the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= was down 0.3% at $3,323.71 per ounce, as of 0028 GMT. U.S. gold futures GCcv1 also fell 0.3% to $3,332.20.

* The U.S. is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect on August 1.

* Trump announced in April a 10% base tariff on most countries, with additional duties of up to 50%. He later postponed the effective date for all but 10% of those tariffs from July 9. The new date grants a three-week reprieve to most affected nations.

* Last week, Trump signed into law a massive package of tax and spending cuts at the White House, which as per nonpartisan analysis will add more than $3 trillion to the nation's $36.2 trillion debt.

* The U.S. dollar index .DXY weakened 0.3% on Monday, after registering its second consecutive weekly loss last week. A lower dollar makes greenback-priced bullion affordable for overseas buyers.

* Elsewhere, the first session of indirect Hamas-Israel ceasefire talks in Qatar ended inconclusively, two Palestinian sources familiar with the matter said early on Monday, adding that the Israeli delegation didn't have a sufficient mandate to reach an agreement with Hamas.

* Spot silver XAG= was steady at $36.94 per ounce, platinum XPT= shed 0.3% to $1,388.06 and palladium XPD= remain unchanged at $1,134.38.