02:00 PM EDT, 05/26/2025 (MT Newswires) -- (Updates prices.)

Gold traded lower mid-afternoon Monday as U.S. President Donald Trump said he will delay a plan to impose 50% tariffs on imports from the European Union to July from June, easing safe-haven buying.

Gold for August delivery was last down US$25.20 to US$3,369.30 per ounce.

The drop comes as Trump said in a social media post he is delaying the imposition of stiff tariffs on European imports to July 9 after on Friday threatening to put them in place on June 1. The delay comes as European Commission President Ursula von der Leyen requested the extension to give negotiators further time to reach a trade agreement.

"Gold fell on reduced haven demand ... after Trump extended the deadline for EU's 50% reciprocal tariff deadline by more than a month until July 9, fostering optimism for reduced trade tensions," Saxo Bank noted.

European stock markets were mostly higher following the extension, though U.S. markets are closed for the Memorial Day holiday. The dollar weakened in electronic trade, with the ICE dollar index last seen down 0.08 points to 99.03. Treasury markets are closed for the holiday.