Gold slipped as its haven status was impacted by signs President Donald Trump may be easing his aggressive stance on trade with the European Union, after he extended a deadline on sweeping tariff measures.
Bullion traded near $3,350 an ounce, after climbing by almost 5% last week, as Trump on Sunday announced that his plans to hit the EU with 50% tariffs would be delayed until July 9 to allow for time for both sides to negotiate a deal. The US leader on Friday had threatened higher-than-expected levies against the bloc, while also warning Apple Inc. that it would be subject to 25% tariffs if it does not manufacture its iPhones in the US.
The trade war unleashed by the new US administration has helped push gold higher by more than a quarter this year, with prices currently trading about $150 below an all-time-high set last month.
While a softer stance on trade would weaken haven demand, gold’s safety appeal has strengthened amid growing concerns about the fiscal position of the US government after Moody’s Ratings this month stripped the US of its top credit rating. Investors are concerned that Trump’s signature tax bill — which last week passed the House and now goes to the Senate — will further swell the deficit.
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