Gold falls after Trump extends tariff deadline on EU goods

Gold prices fell on Monday after US 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 USD 3,329.78 an ounce, as of 1036 GMT. US gold futures GCcv1 fell 1.1% to USD 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 US 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 US 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 USD 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 USD 3,500/oz – from USD 3,150 on May 12 – amid US tariff policies, geopolitical risks, and concerns around the US budget. The bank expects gold prices to consolidate between USD 3,100/oz and USD 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 USD 33.31 an ounce, platinum was down 0.8% to USD 1,086.2, and palladium lost 0.7% to USD 985.51.

(Reporting by Anmol Choubey in Bengaluru, additional reporting by Ishaan Arora; Editing by Janane Venkatraman and Susan Fenton)