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 was down 0.3% at $3,323.71 per ounce, as

of 0028 GMT. U.S. gold futures 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.

* Concerns over tariff-driven inflation have jostled

expectations for Federal Reserve policy. Rate futures show

traders no longer expect a Fed rate cut this month and are

pricing in a total of just two quarter-point reductions by the

year-end.

* 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 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 was steady at $36.94 per ounce,

platinum shed 0.3% to $1,388.06 and palladium

remain unchanged at $1,134.38.

DATA/EVENTS (GMT)

0600 Germany Industrial Output MM, Production

YY SA May

0600 UK Halifax House Prices MM, YY June

0645 France Reserve Assets Total June