Gold has soft retreat on Memorial Day holiday
Gold (XAU/USD) price slips on Monday towards $3,333 at the time of writing, while US markets are closed due to Memorial Day's public holiday. The small correction comes after United States (US) President Donald Trump issues a statement on Truth Social that he would extend to July 9 the deadline for the European Union (EU) to face 50% tariffs.
The decision came after a call between Trump and European Commission President Ursula Von Der Leyen on Sunday, and should help the EU broker a trade deal with the Trump administration.
Although this risk-on euphoria looks tempting to join, this does not mean the rally in the precious metal is over. A softer stance on trade weakens the safe-haven demand for Gold, but the metal’s safety appeal is still strong amid growing concerns about the fiscal position of the US government.
Investors remain concerned that Trump’s tax bill, which last week passed the House and will be debated in the Senate, will further increase both the US deficit and debt.
Source: FXstreet