WASHINGTON (dpa-AFX) - Following the long Memorial Day weekend, the price of gold showed a significant move to the downside during trading on Tuesday.
Gold for May delivery tumbled $64.50 or 1.9 percent to $3,299.10 an ounce after surging $71.30 or 2.2 percent to $3,363.60 an ounce during last Friday's session.
The sharp pullback by the price of the precious metal came after President Donald Trump announced he is delaying a threatened 50 percent tariff on imports from the European Union.
'I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union,' Trump said in a post on Truth Social on Sunday.
'I agreed to the extension - July 9, 2025 - It was my privilege to do so,' he added. 'The Commission President said that talks will begin rapidly.'
Trump said in a subsequent Truth Social post this morning that the EU has 'called to quickly establish meeting dates,' which he described as a 'positive event.'
'I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America,' he said. 'They will BOTH be very happy, and successful, if they do!!!'
Further reducing gold's safe haven appeal, the Conference Board released a report showing a substantial improvement by U.S. consumer confidence in the month of May.
The Conference Board said its consumer confidence index spiked to 98.0 in May after plunging to a downwardly revised 85.7 in April.
Economists had expected the consumer confidence index to inch up to 87.3 from the 86.0 originally reported for the previous month.
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