Quick overview

---

Risk sentiment improved, causing the bullion asset to fall for a second consecutive session after US President Trump decided to delay tariffs on the European Union. The spot price of gold decreased by 1.2 percent to $3,300 an ounce, following an increase of nearly 5 percent the previous week. US gold futures ended the day at $3,300 per ounce.

Gold price action has been volatile as the tariff situation is constantly evolving.

Market participants viewed the overnight breakdown through a short-term ascending trend line as a major trigger for bearish traders.  Although they have been diminishing, the oscillators on the daily chart have not yet endorsed the pessimistic outlook.

The EU asserted that a phone conversation between Trump and EU chief Ursula von der Leyen over the weekend provided “new impetus” to trade negotiations amid Trump’s retreat from his threat to impose 50% tariffs on EU imports the following month. Stock index futures rose as the dollar strengthened, amid a more robust dollar.

The market’s optimism is moderated by geopolitical risks and uncertainty regarding US President Donald Trump’s trade tariffs. Additionally, concerns about a weakening US economy and predictions that the Federal Reserve will further lower interest rates in 2025 may prevent any significant boost to the dollar.