Gold Loses Ground After Softening US Trade Rhetoric.

Gold Prices Fall After Trump Abandons Tariffs on the EU

On Monday, gold prices fell by nearly 1%. Donald Trump, the President of the United States, abandoned the introduction of a 50% tariff on goods from the EU starting June 1. This led to a decrease in demand for this safe-haven asset.

According to Reuters, the spot price of gold dropped by 0.8% to $3332.04 per ounce. Gold futures in the U.S. also fell by 1% to $3331.90.

'I would call it a day of trading within a range,' said UBS analyst Giovanni Staunovo, commenting on the moderate price drop due to Trump's decision to postpone the imposition of higher tariffs on the EU.

Trump extended the deadline to July 9 to give negotiations between the U.S. and the EU a chance to reach an agreement.

Gold prices recorded the best week in the last six days following Trump's threats regarding tariffs on EU goods and the potential introduction of a 25% tariff on Apple iPhones produced outside the U.S. but sold in the country.

Future Predictions

Citi analysts have raised their three-month price forecast for gold to $3500 per ounce from $3150. The bank anticipates price consolidation between $3100 and $3500 due to U.S. tariff policies, geopolitical risks, and concerns about the country's budget.

Meanwhile, China's net gold imports through Hong Kong significantly increased in April, indicating a heightened interest in this precious metal in the markets.