WASHINGTON (dpa-AFX) - Gold retreated on Monday after climbing more than 2 percent to a two-week peak on Friday amid renewed trade tensions.
Spot gold fell 0.7 percent to $3,335.22 per ounce in early European trade, with a weaker dollar and escalating geopolitical tensions helping cap overall losses to some extent. U.S. gold futures were down 0.9 percent at $3,363.01.
U.S.-EU trade tensions eased somewhat after U.S. President Donald Trump said he would delay imposing 50 percent tariffs on imports from the EU until July 9, backing of this threat to impose tariffs on goods from the European Union as soon as 1 June.
The dollar traded weak, with the euro climbing to a one-month high following Trump's U-turn on EU tariffs and his threat to impose 25 percent tariffs on all smartphones made outside of the U.S.
Geopolitical tensions also remain on investors' radar after at least 12 people were killed and more than 60 injured early Sunday following a second consecutive night of large-scale Russian drone attacks.
Russian forces reportedly launched a barrage of 367 drones and missiles at Ukrainian cities overnight, in the largest aerial attack of the war so far.
Trump has called his Russian counterpart, Vladimir Putin, 'crazy' and warned Moscow that any attempt at a total takeover of Ukraine would 'lead to the downfall of Russia.
Elsewhere, Israeli military strikes killed at least 30 Palestinians across the Gaza Strip on Sunday, including a senior rescue service official and a journalist, local health authorities said.
Meanwhile, in a note released Sunday, Citi has raised its near-term gold price target to $3,500 per ounce from $3,000 to $3,300.
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