Gold prices held steady near $3,346 per ounce on Monday, despite a slight dip following the delay of U.S. tariffs on European Union imports. President Donald Trump extended the deadline for imposing 50% tariffs from June 1 to July 9, temporarily easing trade disruption concerns. However, gold’s downside remains limited due to persistent worries over the U.S. fiscal position.
The Congressional Budget Office projects the federal deficit to expand by $4 trillion over the next decade, driven by recent tax cuts and spending increases. This mounting deficit has pressured the U.S. dollar to a one-month low, indirectly supporting gold. Silver mirrored gold’s cautious tone, hovering near $33.54 per ounce.
Both precious metals continue to benefit from the softer dollar and rising expectations of Federal Reserve interest rate cuts later this year.
Gold steady amid tariff delay
Futures markets are now pricing in at least two 25-basis-point rate cuts by year-end, amid slowing U.S. inflation and tepid economic growth.
Investors are closely watching upcoming U.S. economic data for further clues on monetary policy. Key releases this week include durable goods orders, preliminary GDP figures, and the Personal Consumption Expenditures (PCE) price index. Minneapolis Fed President Neel Kashkari recently warned that prolonged tariff policies could risk stagflation, reinforcing market bets on a dovish shift from the central bank.
While trade delays eased market anxiety, broader geopolitical tensions continue to lend support to safe-haven assets. Escalating conflicts in Eastern Europe and ongoing Middle East unrest have sustained demand for gold and silver as investors hedge against uncertainty. Gold may range near $3,346 amid resistance at $3,366.62 and support at $3,332.97, while silver eyes $33.70, with market focus on Fed minutes and key U.S. data.
Traders should watch for a decisive move before positioning, as recent candlestick formations indicate market indecision.
