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 (.DXY), opens new tab 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.

Source: Reuters