Gold prices pull back as Trump postpones EU tariffs
Gold prices fell slightly in Asian trade on Monday, giving back some of last week’s gains after U.S. President Donald Trump over the weekend reneged on his threat to immediately impose 50% tariffs on the European Union, News.az reports citing Investing.
But losses in gold were limited by persistent weakness in the dollar and a steady sell-down in Treasuries, as markets remained on edge over the U.S.’ deteriorating fiscal health and rising debt levels.
Risk sentiment was also rattled by Minneapolis Federal Reserve President Neel Kashkari warning that the tariff shock was likely to be stagflationary, keeping safe haven demand in play.
Spot gold fell 0.2% to $3,349.45 an ounce, while gold futures for June fell 0.5% to $3,376.91/oz by 00:54 ET (04:54 GMT).
Trump postpones 50% tariffs against EU
Trump said on Sunday evening that he had agreed to postpone his recently proposed 50% tariffs on the European Union to early-July, citing positive dialogue with EU head Ursula Von Der Leyen.
The move comes after Trump on Friday threatened to impose 50% tariffs on the EU from early-June, citing a lack of progress in trade negotiations.
While Trump’s Sunday announcement did offer some relief to risk-driven markets, hurting safe haven demand for gold, traders were seen remaining uncertain over the U.S. President’s policies.
Sunday’s announcement also represented another instance of Trump flip-flopping on his tariff threats, a trend that has sparked wild swings in markets this year.
Similar news
