Gold extends decline on possible EU-EU trade deal

Gold extended its losses on Wednesday after reports that the United States and the European Union are moving closer to a 15% tariff agreement dampened safe-haven demand, but silver rose to its highest level since September 2011.

Spot gold fell 1.2% to $3,389.09 an ounce, having hit its highest level since June 16. U.S. gold futures fell 1.3% to $3,399.90.

"We're looking at a trade deal with Japan and considering another one with the EU. Ultimately, this means the EU won't impose large retaliatory tariffs, which has boosted risk appetite," said Bart Melek, head of commodity strategy at TD Securities.

The European Union and the United States are moving toward a trade agreement that would impose a blanket 15% tariff on EU products imported by the United States, two EU diplomats said Wednesday.

Late Tuesday, President Donald Trump sealed a trade deal with Japan that reduces tariffs on auto imports and frees Tokyo from new punitive levies on other goods in exchange for a $550 billion package of investments and loans.

Among other precious metals, spot silver fell 0.2% to $39.19 an ounce, having reached its highest level in nearly 14 years earlier. Meanwhile, platinum fell 1.4% to $1,421.79; and palladium gained 0.2% to $1,277.26.

Copper at an all-time high

Copper prices hit a record high in the United States on Wednesday as the expected date for Washington's imposition of tariffs approaches, while in London they hit a peak in more than two weeks due to the U.S.-Japan trade agreement.

Comex copper futures in the United States rose 1.8% to $5.82 per pound, after hitting a high of $5.93. Trump's 50% tariffs on copper imports are scheduled to take effect on August 1.

Comex copper has gained 32% since February, when Trump ordered an investigation into tariffs on the metal. Its premium over LME copper rose to more than $3,100 a ton, a record. Benchmark three-month copper on the London Metal Exchange (LME) gained 0.1% to $9,925 a ton, after hitting its highest level since July 4.