Gold prices edged lower during early Asian trading on Monday, easing back from last week’s two-week high, as optimism over U.S.-EU trade relations reduced safe-haven demand. The retreat follows U.S. President Donald Trump’s decision to delay a planned 50% tariff on European Union imports from June 1 to July 9, cooling investor nerves and curbing fresh bullish momentum for the yellow metal.
Despite the pullback, downside pressure on gold remains muted. Concerns over the United States’ fiscal trajectory—fueled by a $4 trillion tax and spending bill moving through Congress—and persistent geopolitical tensions are lending continued support. Additionally, expectations that the Federal Reserve may cut interest rates twice in 2025 have weakened the U.S. Dollar, now at a fresh monthly low, providing further support to non-yielding assets like gold.
Minneapolis Fed President Neel Kashkari warned Monday that extended tariffs may raise the risk of stagflation, adding another layer of economic uncertainty.
Meanwhile, geopolitical risk remains elevated as Russia launched its largest aerial assault on Ukraine to date, and Israeli airstrikes continue in Gaza. Trump condemned the Russian offensive and signaled potential new sanctions.
Technical indicators suggest continued buying interest near the $3,325–$3,324 region, aligned with an ascending trendline. A break below could lead to further losses toward $3,300 and the 200-period SMA at $3,283. On the upside, a move above $3,366 could push prices toward the $3,400 mark, with further resistance near $3,430 and the April peak at $3,500.
Market attention now turns to Wednesday’s FOMC minutes and a slate of key U.S. economic data, including durable goods orders, preliminary GDP, and the PCE Price Index, which could shape expectations for Fed policy in the months ahead.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
