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Gold price retreats to one-week low on US tariff delay

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Gold prices retreated on Monday as market concerns eased after US President Donald Trump announced an extension to the upcoming tariff deadline while reiterating that several trade deals are in place.

Spot gold was down 0.5% at $3,319.77 per ounce as of 11:30 p.m. ET. Earlier, it had fallen nearly 1% to a one-week low of $3,297.15.

US gold futures also dipped 0.5% to $3,327.80 per ounce in New York.

Weighing on gold was a stronger US dollar, which received a lift earlier after Trump threatened that he would place an additional 10% tariff on countries aligned with the BRICS group of nations.

Furthermore, market participants are still digesting the US economic data from last week and gauging the Federal Reserve’s monetary policy path.

“The market volumes remain quiet at this moment, and price action is probably still just reflecting the latest piece of economic data, but also starting to look forward to the potential for trade deals to be announced,” said Daniel Ghali, commodity strategist at TD Securities.

Despite Monday’s decline, gold is still up more than 25% this year, trading about $190 shy of a record set in April, with investors seeking safety in the metal amid heightened geopolitical and trade tensions.

(With files from Reuters)

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