Gold Retreats as Trump Delays EU Tariffs, Testing Bull Channel Support

Gold prices opened Monday morning under pressure after President Donald Trump postponed planned 50% European Union tariffs until July 9.

The precious metal traded at $3,346.060 per ounce, declining from Friday’s close as markets showed relief over the delayed trade measures. Trump’s Sunday announcement marked a significant retreat from his earlier threat to impose immediate tariffs starting June 1.

This decision reduced gold‘s safe-haven appeal after the metal had surged over 4% during the previous week. Indian markets reflected the global sentiment with 24-karat gold falling ₹490 to ₹96,380 per 10 grams.

The technical picture reveals gold testing the lower boundary of its established bull channel near the 3330 area. Moving averages continue signaling an upward trend despite Monday’s correction.

The Relative Strength Index suggests potential support from its trend line, while volume patterns indicate institutional profit-taking rather than panic selling.

MCX Gold futures dropped 0.5% to ₹95,902 per 10 grams as Asian markets opened. Vietnamese SJC gold bars remained stable at 119-121 million VND per tael, showing regional divergence in precious metals trading.

The gold-to-silver ratio reached post-pandemic highs at 104:1, highlighting gold’s recent outperformance. Market analysts expect gold to test support near $3,215 before potentially rebounding toward targets above $3,635.

The Federal Reserve‘s anticipated policy shifts remain supportive, with markets pricing over 50% probability of rate cuts in September, October, and December. Central banks continue diversifying reserves into gold amid persistent geopolitical tensions.

March 2025 witnessed record daily trading volumes reaching $298 billion, demonstrating gold’s enhanced liquidity during volatile periods. The first quarter produced the largest ETF inflows since 2022, totaling 226.5 metric tons worth $21.1 billion.

These institutional flows reflect sustained demand despite short-term price corrections. Gold’s retreat from May’s all-time high of $3,500 per ounce appears technical rather than fundamental.

The metal maintains its 47.2% year-over-year gain while consolidating recent advances. Trade negotiations between major economies will likely determine whether gold breaks below the critical $3,045 support level or resumes its upward trajectory.

The current pullback offers entry opportunities for investors who missed earlier rallies. Economic uncertainty persists despite temporary trade relief, supporting gold’s medium-term outlook. Technical indicators suggest the correction remains within normal parameters for a sustained bull market in precious metals.

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