Gold Prices Drop as Trade Tensions Ease

Gold prices fell further on Thursday due to easing trade tensions, leading to a decrease in demand for safe-haven assets, overshadowing support from the dollar's decline.

By 0534 GMT, spot gold dipped 0.2 percent to $3379.69 per ounce, following a 1.3 percent drop on Wednesday. U.S. gold futures decreased by 0.4 percent to $3358.40.

The European Union and the United States are close to finalizing a trade agreement that would impose a 15 percent tariff on European goods, exempting others, as per officials from the European Commission.

Risk appetite in financial markets generally increased, fueled by progress in trade talks and hopes for more agreements.

The dollar index fell to its lowest level in over two weeks against major currencies, making dollar-priced gold less costly for investors holding other currencies.

Investors are now focused on weekly jobless claims data and the flash purchasing managers' index from S&P Global to gauge economic resilience before the Federal Reserve's policy decision next week.

Among other precious metals, spot silver slipped 0.6 percent to $39.04 per ounce. Platinum remained steady at $1410.92, while palladium dropped 0.9 percent to $1266.41.