Gold prices fell nearly 1 per cent on Monday after US President Donald Trump dropped his threat to impose 50 per cent tariffs on goods from the European Union from June 1, reducing demand for the safe-haven asset, reports Reuters.
Spot gold slipped 0.8 per cent at $3,332.04 an ounce by 1250 GMT. US gold futures fell 1 per cent to $3,331.90.
"I would call it a range-trading day," said Giovanni Staunovo, UBS analyst, attributing the modest drop in prices to Trump's decision to delay the imposition of higher tariffs on the EU.
"With US Memorial Day, activity is likely to be on the lower end today."
Markets in the United States and Britain were closed on Monday due to public holidays.
Trump on Sunday restored a July 9 deadline to allow for talks between Washington and the European Union to produce a deal.
On Friday, gold prices recorded their best week in six last week, after Trump renewed tariff threats on EU goods and said he was considering a 25 per cent tariff on any Apple iPhones that are sold in the US but not made there.
Meanwhile, China's net gold imports via Hong Kong more than doubled in April from March, and were the highest since March 2024, data showed.
Citi on Sunday upgraded its zero-to-three month price target for gold back to $3,500/oz - from $3,150 - amid US tariff policies, geopolitical risks and concerns around the US budget. The bank expects gold prices to consolidate between $3,100/oz and $3,500/oz.
Spot silver eased 0.3 per cent to $33.38, platinum fell 0.6 per cent to $1,088.53 and palladium lost 0.6 per cent to $987.27.
