Trade discussions between the European Union and the United States witness renewed vigor, following a phone call between the EU and President Trump.
Gold prices experienced a sharp decline at the start of this week, erasing all gains registered in Friday's rally, despite the commodity having risen more than 25% year-to-date.
The plunge came after President Trump announced plans to impose a 50% tariff on goods from the European Union, fueling global market uncertainty. In response, investors often seek refuge in safe-haven assets like gold, given the increased trade tensions. The anticipation of escalating trade spat between the U.S. and the EU stirred market volatility, thereby driving gold prices upwards on Friday[2][4].
However, the rally was short-lived as President Trump subsequently delayed the implementation of the tariff, which diminished gold's attractiveness as a safe-haven asset and sent its price tumbling[1][4].
The unexpected delay in the tariff implementation by President Trump led to a decrease in gold's appeal as a safe-haven asset in the finance industry, causing a drop in gold prices. This situation was reflective of the general news headlines, where political events significantly influence business and market trends.
