Gold retreats slightly on Memorial Day, trading at $3,333 amid closed US markets. Trump’s tariff delay boosts risk sentiment, but US debt concerns keep gold’s safe-haven appeal strong.
Gold Holds Below $3340
Monday’s European trading session saw the price of gold stay trapped below $3,340.
Trump’s announcement of a July 9 postponement on EU tariffs caused some comfort in Europe.
Concerns about US debt remain in the backdrop, limiting the precious metal’s decline.
Monday’s closing – US markets – gold (XAU/USD) = $3,333
The little adjustment follows US President Donald Trump’s announcement on Truth Social that he would extend the deadline for the EU to impose 50% tariffs until July 9.
Gold Resists Trade Optimism
The move, which should assist the EU in negotiating a trade agreement with the Trump administration, followed a phone conversation between Trump and Ursula Von Der Leyen, president of the European Commission, on Sunday.
Also Read: Gold, Silver Rates Today: Gold Crosses ₹99,300, Silver Above ₹
Even while it may seem tempting to join this risk-on frenzy, the precious metal advance is still going strong. Although a more lenient trade policy reduces the demand for gold as a safe haven, the metal’s allure as a safe haven remains robust despite mounting worries about the US government’s financial situation.
Investors are still worried that Trump’s tax package, which passed the House last week and will now be discussed in the Senate, could result in a significant rise in the US debt and deficit.
Daily digest market movers: Gold price increase due to US credit downgrading
Also Read: Why Intempus Wants Robots to Mirror Human Physiology
Citing worries about tariffs, significant geopolitical threats, and strong economic growth in China and India, Citigroup Inc. increased its three-month price prediction for gold back to $3,500/ounce.
US President Trump said Sunday that he will postpone his intentions to impose 50% tariffs on the EU until July 9 in order to give both parties time to work out a solution.
In addition to warning Apple Inc. that it would face 25% tariffs if it did not build its iPhones in the US, the US leader threatened higher-than-expected 50% charges on the EU on Friday, according to Bloomberg.
Tariff Pause Sparks Caution
Market analyst Josh Gilbert of eToro cautioned that Trump’s tariff strategy would not alter structurally as a result of these delays. According to Bloomberg, he said, “Pauses are fine for the time being, but we need to see more agreements in place during this time to confirm Trump’s more negotiable approach.”
Also Read: Foster Hub for At-Risk Dogs
According to a government website statement, Vietnam’s prime minister Pham Minh Chinh has requested that the nation’s central bank, finance ministry, and other pertinent agencies investigate the creation of a regulated gold exchange in order to facilitate open public trading and guard against manipulation and smuggling, according to Bloomberg.
Uncertainty Supports Gold Prices
As growing budgetary worries in the US seem to have dampened interest in the world’s reserve currency this year, the US dollar also declines on Monday, continuing Friday’s losses.
Technical Analysis of the Gold Price: Demand is stagnant
After Trump and von der Leyen agreed to continue trade talks, investors flocked to riskier assets, which caused gold to regress.
Even yet, the wait is just a month, and it is almost difficult to negotiate a trade deal between the two blocs in that short amount of time. It is necessary to see these news as short bursts of comfort inside a larger narrative that, because of the increased uncertainty, is still in favor of Gold.
Gold Faces Key Levels
The first level to watch for as resistance on the upswing is the R1 barrier at $3,386. Not far behind, the R2 resistance at $3,415 may facilitate a comeback to the $3,440 round level and maybe lead to fresh all-time highs above $3,500.
In contrast, if the price of gold drops, some thick-layered support will show up. The daily S1 support, which protects the $3,300 large number, is $3,307 on the downside. The S2 support at $3,258 may provide some intermediate support.
Conclusion
Gold saw a mild pullback on Memorial Day, but safe-haven demand stays strong amid US debt concerns. While Trump’s tariff delay boosted risk appetite, gold remains supported by global uncertainties and strong demand, keeping its upward potential intact.