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Trump extends EU trade talk deadline to July 9

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Dollar hits one-month low vs rivals

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Gold expected to retest $3,500/oz in coming months,

analyst says

(Updates for EMEA morning session)

By Anmol Choubey

May 26 (Reuters) - Gold prices fell on Monday after U.S.

President Donald Trump reversed course on his threat to impose

50% tariffs on goods from the European Union beginning June 1,

reducing demand for the safe-haven asset.

Spot gold was down 0.7% at $3,334.53 an ounce, as of

0848 GMT. U.S. gold futures fell 1% to $3,333.40.

"I would call it a range-trading day," said Giovanni

Staunovo, UBS analyst, attributing the modest drop in prices to

Trump's decision to delay the imposition of higher tariffs on

the EU.

"With U.S. Memorial Day, activity is likely to be on the

lower end today."

The markets in the United States and Britain are closed due

to public holidays.

Trump on Sunday restored a July 9 deadline to allow for

talks between Washington and the European Union to produce a

deal. Gold prices recorded their best week in six last week,

after Trump renewed tariff threats on EU goods and said he was

considering a 25% tariff on any Apple iPhones that are sold in

the U.S. but not made there.

The dollar index fell to a nearly one-month low

against its rivals.

"We still look for higher prices over the coming months,

expecting the yellow metal to retest the level of $3,500/oz,"

Staunovo said.

Meanwhile, Citi on Sunday upgraded its zero-to-three month

price target for gold back to $3,500/oz - from $3,150 on May 12

- amid U.S. tariff policies, geopolitical risks and concerns

around the U.S. budget. The bank expects gold prices to

consolidate between $3,100/oz and $3,500/oz.

On the geopolitical front, Russia has attacked Ukraine for a

third night in a row, Ukrainian regional officials and emergency

services said, a day after the biggest aerial attack of the war

so far killed at least 12 people.

Spot silver fell 0.2% to $33.40 an ounce, platinum

was down 0.8% to $1,085.76 and palladium lost 0.6%

to $987.18.