Quick overview

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The bullion asset dipped after U.S. President Donald Trump postponed a 50% tariff on EU goods scheduled for June 1, which hurt gold’s safe-haven appeal. U.S. gold futures fell to $3370 an ounce. The yellow metal saw traders booking profits due to the holiday’s low volatility and thin liquidity.

President Trump’s inconsistent trade policies could lead to high market volatility when trading resumes today.

Technically,  the bullion asset is bullish in the long term. A daily close above $3,300 would enable buyers to target the $3,368 high from last week. If this level is surpassed, the next stop would be the all-time high of $3,500.

Trump delayed a planned tariff increase on EU goods until July 9 to allow time for negotiations.

Gold had its best weekly performance in six weeks before experiencing a decline. Trump’s tariff threats on EU goods and a 25% tariff threat on iPhones manufactured outside the U.S. contributed to the market’s strong performance last week. Some institutional analysts predict that prices will retest the coveted $3500 barrier, despite the decline.

Chinese Imports Reach a One-Year High.  Chinese gold imports doubled in April compared to March, reaching a one-year high, indicative of strong Asian demand.

Citigroup has raised its gold price outlook for the next three months to $3,500 an ounce, citing aggressive U.S. tariff threats and escalating geopolitical tensions. In the second half of 2025, the bank anticipates that gold will maintain its value between $3100 and $3500 due to strong demand for safe-haven assets and risks like Russian aggression toward the U.S.