Gold Edges Lower as Trump’s Tariff Delay Lifts Risk Sentiment, Metals Retrace Gains

Gold prices declined in Asian trading on Tuesday, extending recent losses after U.S. President Donald Trump’s decision to postpone steep tariffs on the European Union helped buoy global risk sentiment.

Spot gold fell 0.5% to $3,326.53 an ounce, while gold futures for August dropped 1.2% to $3,353.09/oz by 01:30 ET (05:30 GMT). The yellow metal has struggled to maintain momentum this week, weighed down by improving risk appetite and a rebound in the bond market.

Trump’s decision to delay 50% tariffs on EU imports until early July eased immediate fears of an escalation in global trade tensions, prompting investors to shift into risk-driven assets. U.S. stock index futures rose sharply on Tuesday, though volumes remained light following Monday’s U.S. holiday.

Despite the drop, gold remains supported by persistent concerns over the long-term impact of Trump’s tariff policies. Minneapolis Fed President Neel Kashkari warned that the tariffs risk a stagflationary shock for the U.S. economy—combining sluggish growth with high inflation. However, Kashkari also suggested that the Fed is unlikely to cut interest rates in the near-term, helping stabilize battered U.S. Treasuries.

Yields, which surged last week on fiscal concerns and the passage of a divisive tax cut bill in Congress, have begun to ease, taking pressure off government bonds. Still, Moody’s downgrade of the U.S. sovereign credit rating and rising debt levels continue to cast a shadow over market sentiment.

Broader metals also saw a pullback on Tuesday. Platinum futures fell 1.1% to $1,079.50/oz, while silver futures dropped 1.2% to $33.265/oz, as traders booked profits after last week’s strong gains.

In industrial metals, copper prices slipped amid profit-taking and bond market stabilization. Benchmark copper futures on the London Metal Exchange fell 0.6% to $9,562.80 a ton, while U.S. copper futures declined 1.6% to $4.7730 a pound.

Looking ahead, traders will closely monitor developments around Trump’s tariff plans, Fed policy signals, and ongoing fiscal debates in the U.S. Congress for cues on gold’s near-term direction.

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