According to webangah news Agency’s international economics desk, citing Reuters via Tasnim News Agency, gold prices declined in Monday’s trading following the postponement of trade negotiations with the European Union. Former U.S. President Donald Trump has canceled his threat to impose 50% tariffs on EU imports starting June 1.
The spot price of gold fell by 0.29% to $3,347.93 per ounce today. Meanwhile, gold futures on New York’s COMEX market dropped 0.65%, settling at $3,372.60 per ounce.
Analysts note that suspending tariffs on EU imports has boosted investor confidence and reduced demand for gold as a safe-haven asset.
However, the upward trend in gold prices is expected to continue due to U.S. policies negatively impacting the dollar and domestic investments.central banks worldwide are increasingly shifting reserves from dollars to gold.
The reversal came after Trump agreed on Sunday to delay trade talks with the EU until July 9 following remarks by the European Commission president requesting more time for negotiations.
Trump had initially proposed implementing a 50% tariff on EU goods starting June 1 while maintaining a seperate plan for a 25% tariff on iPhones manufactured outside America.
The uncertainty had driven Friday’s gold rally—surpassing two-week highs with over a 2% gain—while pushing the dollar index down nearly one-month lows as weaker dollar rates make bullion cheaper for foreign currency holders.
The SPDR Gold Trust reported holdings decreased by .15%, totaling at roughly ~922 metric tons compared Thursday figures (~924). Among other precious metals: silver rose slightly (+$33/oz), platinum dipped (-$1094).
