Gold prices edged lower in Asian trading on Monday, easing from recent highs after U.S. President Donald Trump delayed plans to impose 50% tariffs on the European Union. However, safe haven demand remained underpinned by ongoing concerns over U.S. fiscal instability and persistent dollar weakness.
Spot gold dipped 0.2% to $3,349.45 per ounce, while June futures fell 0.5% to $3,376.91. The market had surged to a record $3,500/oz earlier this month amid escalating trade tensions and economic uncertainty.
Trump's Sunday announcement to postpone EU tariffs until July, following a positive call with European Commission President Ursula von der Leyen, temporarily soothed risk sentiment. Yet, investors remained wary of continued policy unpredictability after Trump’s earlier threats to begin tariffs in June and extend them to smartphone imports.
Despite the slight pullback in gold, safe haven flows persisted as Minneapolis Fed President Neel Kashkari warned that Trump’s tariff actions could trigger stagflation—a mix of slow growth and high inflation. Kashkari also noted the Fed was unlikely to change interest rates before September due to economic uncertainty.
The dollar index slipped 0.3%, pressured by rising U.S. debt concerns and a holiday-thinned trading session. Treasury yields remained elevated amid fears over the country’s fiscal health, further supporting bullion.
Other precious metals also gained on dollar weakness. Platinum futures rose 0.7% to $1,095.90/oz, while silver futures climbed 0.3% to $33.690/oz.
Investors continue to monitor geopolitical developments and U.S. trade policy signals, both of which have been key drivers of gold’s rally in 2025. Growing fears of a prolonged stagflationary environment could keep gold prices elevated in the near term.


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