EU Tariff Extension Sends Gold Down From Friday’s Rally Peak

Gold prices declined nearly one percent on Monday as President Donald Trump postponed his threatened tariffs on European Union goods.

Trading data from multiple platforms showed spot gold falling to $3,346 per ounce while US futures dropped to $3,325. Markets experienced thin trading volumes due to holiday closures in the United States and United Kingdom.

Trump’s Sunday announcement extended the EU tariff deadline to July ninth. This decision reversed his Friday threat to impose fifty percent duties starting June first.

The policy shift immediately reduced safe-haven demand that had driven gold’s massive rally. Financial analyst Kyle Rodda noted relief spread through markets after the tariff halt announcement.

The precious metal had surged over two percent on Friday to reach $3,365 per ounce. This marked gold’s highest level in two weeks following Trump’s escalating trade rhetoric.

The weekly performance showed gains of $181.60 or 5.71 percent. This represented the largest weekly increase since April eleventh according to COMEX data. Technical analysis reveals gold trading within an ascending channel pattern on daily charts.

The fifty-day moving average provides support near $3,310 while resistance appears at $3,385. Bollinger Bands indicate recent price action near the upper boundary before Monday’s correction.

The Relative Strength Index climbs steadily but remains below overbought territory at eighty. Chart patterns show a Harami reversal formation on four-hour timeframes near resistance levels.

Current price action suggests a corrective wave within the broader uptrend. Support levels extend down to $3,270 and $3,220 if selling pressure continues. Moving averages maintain bullish alignment supporting the overall positive trend structure.

Fundamental factors continue supporting gold‘s outlook despite Monday’s retreat. Moody’s downgraded the US credit rating from Aaa to Aa1 citing fiscal concerns. The House passed Trump’s tax legislation projected to increase federal debt by $3.8 trillion.

These developments weaken dollar strength and boost gold’s safe-haven appeal among investors. Chinese demand remains robust with net gold imports through Hong Kong doubling in April.

This marked the highest import levels since March 2024 according to official data. Central bank purchases globally continue supporting baseline demand for the precious metal.

The week ahead features key economic releases including durable goods orders and GDP estimates. Federal Reserve meeting minutes will provide insight into future monetary policy direction.

Core Personal Consumption Expenditure data on Friday represents the Fed’s preferred inflation measure.Gold maintains its position up 27.93 percent year-to-date despite Monday’s correction.

Goldman Sachs projects prices reaching $3,700 by year-end while JPMorgan forecasts $4,000 in 2026. Geopolitical tensions and fiscal sustainability concerns support the longer-term bullish outlook. However near-term price action depends on trade negotiations and central bank policy signals.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.