Gold temporarily loses its luster after the postponement of tariffs on the European Union
The global gold markets witnessed a noticeable decline today, Monday, May 26, 2025, and this decline since the beginning of the opening week has now reached below 3340 dollars per ounce, this decline comes following the decision of US President Donald Trump to postpone the imposition of 50% customs duties on EU imports until July 9, after he had threatened to impose them from June 1.
Factors affecting gold prices
- Customs tariffs
The markets will witness some kind of relief after the suspension of tariffs on the European Union, which led to a decline in gold prices, but the general trend remains positive for gold due to US policies that may negatively affect the dollar and US assets, adding that many central banks are moving away from the dollar towards gold.
Gold rose more than 2% on Friday, supported by a surge in safe-haven assets, after Trump's statements in which he threatened to impose 50% tariffs on EU imports.
- Geopolitical factors and their impact on gold
Besides commercial factors, gold markets were affected by global geopolitical developments, as Russian troops fired a barrage of 367 drones and missiles at Ukrainian cities, in the largest air attack since the war began, killing at least 12 people and injuring dozens.such events usually increase the demand for gold as a safe haven, but their impact this time was limited due to the great dominance of business news on the market mood.
Future forecasts for the gold and currency
markets Despite the current decline, the outlook remains positive in the medium term due to several factors:
- Continued trade uncertainty as the new deadline of July 9 approaches.
- Central banks are directed to increase their gold reserves.
- Inflationary fears and dollar weakness.
- Geopolitical developments in Ukraine and the Middle East.
