Gold falls after Trump extends tariff deadline on EU goods
Gold prices fell on Monday after U.S. President Donald Trump reversed course on his threat to impose 50% tariffs on goods from the European Union from June 1, reducing demand for the safe-haven asset.
Spot gold was down 0.8% at $3,329.78 an ounce, as of 1036 GMT. U.S. gold futures fell 1.1% to $3,329.20.
"I would call it a range-trading day," said Giovanni Staunovo, UBS analyst, attributing the modest drop in prices to Trump's decision to delay the imposition of higher tariffs on the EU.
"With U.S. Memorial Day, activity is likely to be on the lower end today."
Markets in the United States and Britain were closed on Monday due to public holidays.
Trump on Sunday restored a July 9 deadline to allow for talks between Washington and the European Union to produce a deal.
Gold prices recorded their best week in six last week, after Trump renewed tariff threats on EU goods and said he was considering a 25% tariff on any Apple iPhones that are sold in the U.S. but not made there.
The dollar index fell to a near one-month low against its rivals.
"We still look for higher prices over the coming months, expecting the yellow metal to retest the level of $3,500/oz," Staunovo said.
Meanwhile, China's net gold imports via Hong Kong more than doubled in April from March, and were the highest since March 2024, Hong Kong Census and Statistics Department data showed on Monday.
Citi on Sunday upgraded its zero-to-three month price target for gold back to $3,500/oz - from $3,150 on May 12 - amid U.S. tariff policies, geopolitical risks and concerns around the U.S. budget. The bank expects gold prices to consolidate between $3,100/oz and $3,500/oz.
Geopolitical risks include the war in Ukraine. Russia attacked Ukraine for a third night in a row, Ukrainian regional officials and emergency services said, a day after the biggest aerial attack of the war so far killed at least 12 people.
Spot silver fell 0.5% to $33.31 an ounce, platinum was down 0.8% to $1,086.2 and palladium lost 0.7% to $985.51.
(Reporting by Anmol Choubey in Bengaluru, additional reporting by Ishaan Arora; Editing by Janane Venkatraman and Susan Fenton)
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