Gold price plunges almost 2% on risk rally spurred by tariff delay
The post Gold price plunges almost 2% on risk rally spurred by tariff delay appeared on BitcoinEthereumNews.com.
XAU/USD drops below $3,300 as Trump’s EU tariff pause boosts sentiment and US Dollar. Trump delays 50% EU tariffs to July 9, improving market mood and weighing on safe-haven demand. DXY surges 0.62% to 99.54, driven by four-year high in US Consumer Confidence. Gold prices posted losses of nearly 2%, falling below the $3,300 figure, as market participants cheered US President Donald Trump’s decision to delay tariffs on European Union goods. Consequently, an improvement in risk appetite and the Greenback trimming some of last week’s losses weighed on the non-yielding metal. Over the weekend, a call between Trump and the EU chief, Ursula von der Leyen, ended with Washington’s decision to postpone 50% tariffs on EU goods until July 9. This shift in investors’ mood triggered outflows from haven assets, except for the US Dollar, and pushed global equities higher. The US Dollar Index (DXY), which tracks the buck’s value against a basket of six currencies, rises over 0.62% to 99.54, fueled by an improvement in Consumer Confidence, which according to the Conference Board (CB) rose the most in four years. News that Washington could be on the brink of securing additional trade deals in the near term added to the positive sentiment among traders. Fox Business News Gasparino, in a post on X, revealed that a framework between the US and India is close to being announced. Other economic data in the US revealed that Durable Goods Orders fell in April the most since October, with business equipment diving sharply due to uncertainty about tariffs and US tax policy. Bullion’s faith for the remainder of the week rests on the upcoming US economic docket. They will eye the Federal Reserve’s (Fed) last meeting minutes, the second estimate for Gross Domestic Product (GDP) in Q1 2025, and the Fed’s preferred…
Filed under: News - @ May 27, 2025 8:26 pm