Russia-Ukraine still supports gold prices, Trump postponed EU tariffs

Basic news

On Tuesday (May 27), spot gold fluctuated slightly, and trading is currently around $3347.17/ounce. US President Trump decided to give up the threat of imposing 50% tariffs on EU imported products from next month. The gold price fell to around $3324 on Monday, but was soon supported by the low-priced buying. The geopolitical situation in Russia and Ukraine also provided support for the gold price, closing at $3342.23/ounce on Monday, a drop of about 0.5%.

U.S. President Trump said Russian President Putin launched the largest air strike since the war began on Ukraine and he is considering imposing new sanctions on Moscow.

The US dollar index fell to 99.69 on Monday, a new low since April 29 and also provides support for gold prices. U.S. stocks closed on Monday due to Memorial Day, but stock index futures rose more than 1%, the pan-European stock index STOXX rebounded to the level before Trump unexpectedly issued tariff threats on Friday, and the euro rose to its highest level since the end of April.

Oil prices remained stable on Monday, and it was reported that OPEC+ oil-producing countries will hold a meeting on May 31, a day ahead of the original plan. The U.S. market was closed for the Memorial Day holiday on Monday, and crude oil market trading was light.

The U.S. and EU Trade Representatives will hold talks later on Monday. A spokesman for the EU Executive eouu.cnmittee said: "They agreed to speed up trade negotiations and maintain close ties. Now there is a new impetus for negotiations, and we will use it as a driving force."

However, Trump's big shift in stance reminds policymakers and investors that his trade policy changes are staggering and it is unclear how the EU will balance its push.Mutual-benefit trade agreements and substantial concessions demanded by Washington.

Stock Market

U.S. stocks are closed on Monday. European stocks kicked off the week with a positive outlook on Monday, regaining lost ground on the previous trading day after U.S. President Donald Trump postponed the threat of imposing 50% tariffs on Europe, which made the market feel relieved.

The Pan-European STOXX600 index closed up 1%. The index fell 0.9% on Friday after Trump unexpectedly called for high tariffs on EU goods, saying negotiations with the EU were not moving fast enough.

On Sunday, Trump extended the deadline for tariffs from June 1 to July 9, after EU Executive eouu.cnmittee President von der Leyen said it would take more time to reach an agreement.

The automotive and parts sectors, which are sensitive to tariff-related pressures, led the gains, with an increase of 1.8%. However, Porsche fell 3.3%, limiting the sector's gains.

The defense and automobile sectors pushed the German DAX index to rise 1.7%, close to a record high. Luxury stocks with larger exposure to the U.S. market also rose. Kering Group PRTP.PA, LVMH and Richemont Group CFR.S all rose by about 1%, while the luxury goods sector rose by about 1%.

UBS Global Wealth Management Chief Investment Officer Mark Haefele said: "While it is good news that the EU and the U.S. have more time to negotiate, the rate of the stock market rebound suggests that investors may be too optimistic about the path of trade negotiations."

The U.S. market is on a public holiday, and market trading is quieter than usual. France CAC-40 Index. FCHI closed up 1.21%. UK FTSE 100 Index. FTSE closed down 0.24%.

Forex Market

The euro hit a one-month high against the dollar on Monday after U.S. President Trump abandoned the threat of imposing a 50% tariff on EU goods from June 1, and the EU demanded time to "reach a good deal."

The dollar continues to fall against multiple currencies, Trump's big policy turn, and the eouu.cnprehensive spending and tax cut bills he is currently pushing have discouraged investors from U.S. assets.

Ray Attrill, head of foreign exchange research at National Australia Bank (NAB), said: "The 'selling of the United States' theme that dominated the market in April has reappeared. The market may have formed a judgment - and may be correct - that tariffs between the United States and the EU will not eventually reach 50%, but how to achieve this result is frankly no one can say at the moment."

The euro climbed 0.55% against the dollar earlier to $1.1418, the first time since April 29. The euro closed up 0.2% on Monday to close at $1.1386, up 10% year to date.

In the past few months, the dollar's decline has been largely beneficial to the euro, with investors focusing on a range of non-U.S. markets.

ECB President Lagarde said on Monday that if the member governments can strengthen the euro zoneWith financial and security architecture, the euro may become a viable alternative to the US dollar, bringing great benefits to the euro zone.

"The changes are taking place create opportunities for the 'global euro moment'," Lagarde said in a speech in Berlin. "The euro will not automatically gain influence, it must fight for it." (FullStory)

The pound rose 0.4% against the dollar earlier, hitting its highest since February 2022, and closed up 0.2% at $1.3562 on Monday.

As investors' sentiment improves, the safe-haven yen and Swiss franc have fallen. The dollar rose 0.2% against the yen on Monday to close at 142.84 yen, and the dollar closed at 0.8208 CHF on Monday.

Michael Pfister, a foreign exchange strategist at eouu.cnmerzbank, said: "After Trump's recent 180-degree turn, we certainly have to wait and see what happens next. It may be reached with the EU by July 9. However, after a call, the fundamental problem can change, which is questionable. After the news last Friday, one thing should be clear: the respite we currently have on tariffs is only temporary." Trump also said on Sunday that the spending and tax cuts could face "significant" changes in the Senate, which may acknowledge investors' fiscal concerns.

According to the Congressional Budget Office's calculations, the House version of the tax cut bill will cause a rise in federal government debt by about $3.8 trillion over the next decade. Federal debt is currently $36.2 trillion.

International Oil Market

Oil prices remained stable on Monday. It is reported that OPEC+ oil-producing countries will hold a meeting on May 31, a day ahead of the original plan.

Brent crude oil futures closed down $0.04 to $64.74 per barrel, while the closing price of U.S. crude oil was basically the same as the previous trading day.

The U.S. market was closed on Monday due to the Memorial Day holiday and the market was not settled.

Three OPEC+ sources revealed news of the change in the meeting date tomorrow on Monday. The meeting may determine production in July, after sources told Reuters that another 411,000 barrels per day will be added at the meeting.

This meeting has nothing to do with the OPEC+ online ministerial meeting originally scheduled to be held on May 28. According to Russian News Agency, Russian Deputy Prime Minister Alexander Novak said on Monday that before the meeting, OPEC+ had not discussed the issue of an additional 411,000 barrels per day.

"At this stage, it feels like the market has been exhausted by the news," said Rory Johnston, founder of eouu.cnmodityContext eouu.cnmunications and Toronto-based analyst. He also said investors and traders are still looking forward to OPEC production increase, but they are reluctant to react until substantial progress occurs.

JohnsTon pointed out that although the original production increase plan has eouu.cne into effect, OPEC oil production still fell slightly in April, which made the overall market even more hesitant.

"It feels like (OPEC) really wants to make headlines every few days," Johnston said. "But the market's response to them is waiting for any (substantial) action." U.S. President Trump said that U.S. President Donald Trump's decision to abandon the threat of imposing 50% tariffs on EU imported products from next month marks another temporary easing of trade tensions, and both Brent and U.S. crude prices have risen earlier on Monday.

International News

Trump considers imposing more sanctions on Russia

1. According to Refinitiv U.S. President Trump, Russian President Putin launched the largest air strikes in Ukraine since the war began, and has been "completely crazy" and said he is considering imposing new sanctions on Moscow, but he also criticized Ukrainian President Zelensky.

2. As Trump made these remarks on the TruthSocial platform, Russia launched a large-scale air strike on Ukraine for the third consecutive night.

3. The Ukrainian Air Force said that Russia fired 355 drones and 9 cruise missiles to Ukraine at night. An air force spokesman told Reuters that this was the largest drone attack Russia has launched in the war so far.

4. "I have always said that he wants the whole of Ukraine, not just a part of it. Perhaps the facts are confirming my judgment, but if he does, it will lead to the collapse of Russia!"

5. Trump also criticized Zelensky, posting a statement saying that the Ukrainian leader "has no good for his country in his words. Everything he says creates problems. I don't like this practice, so it's better to stop quickly."

The EU said that US-Europe trade negotiations have "new impetus" but uncertainty makes eouu.cnpanies feel uncomfortable

1. The EU said on Monday that US President Trump decided to give up the threat of imposing 50% tariffs on EU imported products from next month, which injected "new impetus" into trade negotiations, with global stock markets rising and the euro strengthening.

2. Trump retracted the new tariff threat announced on Friday and resumed the July 9 deadline for Washington to negotiate with the 27 EU countries to reach an agreement. Earlier, he had a "very pleasant call" with EU Executive eouu.cnmittee President von der Leyen.

3. Pan-European Stock Index. STOXX rebounded to levels before Trump issued an unexpected tariff threat on Friday, with the euro rising to its highest level since late April. Gold prices fell as Trump's latest move lowered demand for safe-haven assets.

4. A spokesperson for the EU Executive eouu.cnmittee said of the call between Trump and von der Leyen: "They agree to speed up trade negotiations and maintain close ties."

5. The U.S. and the EU Trade Representative willTalks will be held later Monday. The spokesperson said: "Negotiations now have new impetus, and we will use this as a driving force." Lagarde said that if the financial and security structure is strengthened, the euro may become a substitute for the dollar.

1. European Central Bank President Lagarde said on Monday that if the governments of member states can strengthen the financial and security structure of the euro zone, the euro may become a viable alternative to the dollar, bringing great benefits to the euro zone.

2. "The changes are taking place create opportunities for the 'global euro moment'," Lagarde said in a speech in Berlin. "The euro will not automatically gain influence, it must strive for it." 3. Lagarde said that for this, Europe needs a deeper and more liquid capital market, must strengthen its legal base, and need to support its eouu.cnmitment to open trade through security capabilities.

4. Lagarde said that if the euro wants to play a greater role, it must also strengthen its military strength and provide support for the partnership.

5. Lagarde said in a speech at the Herty Academy: "This is because investors - especially official investors - are also seeking another form of geopolitical assurance: they invest in assets in regions where they are reliable security partners and can fulfill their alliance obligations with hard power."

6. She said that Europe should also make the euro the currency of choice for eouu.cnpanies to issue international trade invoices. This can be achieved through the signing of new trade agreements, strengthening cross-border payments and signing liquidity agreements with the ECB.

7. However, Lagarde said that internal economic reform may be more imminent. She said that the eurozone's capital market is still fragmented and inefficient, and lacks safe assets that are truly liquid, widely available, and that investors can rush to.

United Nations agency: The conflict caused less than 5% of the arable farmland in Gaza

The assessment report released by the United Nations agency on May 26 pointed out that due to factors such as severe damage to the ongoing conflict and difficulty for farmers to reach, the arable area is only less than 5% of the arable area, and the local food production situation further deteriorates and the risk of famine is intensified.

Iranian Foreign Ministry Spokesperson: Uranium enrichment activities must be retained and there will be no concessions

Iranian Foreign Ministry Spokesperson Bagae said on the 26th that Iran must retain uranium enrichment activities, and Iran will not concessions at all. Iran's Foreign Ministry spokesman Bagae said uranium enrichment activities are an integral part of Iran's peaceful development of nuclear energy and Iran's nuclear industry and must be retained. We cannot give in on this issue. Therefore, the suggestions made by parties including Oman will definitely take this red line into consideration. A senior official of the Iranian nuclear negotiation team also denied the claim that Oman's proposal included Iran's suspension of uranium enrichment for six months on the 26th. He said Iran will not stop uranium enrichment under any circumstances, and Oman's proposal will also include Iran's right to enrich uranium.

A car crash in the city center of Liverpool, UK

On May 26 local time, a traffic accident occurred in the city center of Liverpool, England. A car collided with several pedestrians near Water Street in Liverpool, causing chaos at the scene and injured many people. It is reported that the accident occurred during the Premier League victory parade of Liverpool Football Club. Local police issued a notice saying that the relevant personnel have been controlled, a male suspect has been detained on the spot, and emergency rescue work is underway. Police said the specific cause of the accident is still under investigation and called on citizens to remain calm and avoid spreading unconfirmed information. At present, there are no official reports on casualties. The British Prime Minister's Office said on the same day that British Prime Minister Stamer "has learned about the latest progress in the incident."

Israeli media broke the news: Netanyahu and Trump had a fierce disagreement

According to Israel Channel 12, Israeli Prime Minister Netanyahu and U.S. President Trump had a fierce telephone conversation on how to deal with Iran, which is inconsistent with previous claims that the two reached a unified position in preventing Tehran from obtaining nuclear weapons. According to reports, sharp differences emerged during the conversation, and Trump told Netanyahu: "I hope to reach a diplomatic solution with the Iranians. I believe I have the ability to make a good deal." Trump also stressed his interest in an agreement that is in the interests of both sides. Not long before the report was released, U.S. Homeland Security Secretary Norm told Fox News, "President Trump sent me here to talk to the Prime Minister about the progress of the negotiations and how important it is for us to stay united and eouu.cnplete the process." Norm called the meeting "very candid" and may imply potential tensions.

Russian Vice Prime Minister: OPEC+ has not discussed the issue of increasing production in July

According to Russian News Agency, Russian Deputy Prime Minister Novak said on Monday that OPEC+ has not discussed the issue of increasing oil production by another 410,000 barrels per day before the meeting. OPEC+ will hold an online ministerial meeting on the 28th. Novak said they are expected to discuss the current market situation, forecasts and some "adjustments". Another meeting will be held by the eight OPEC+ countries that have promised additional voluntary cuts in oil production. Three OPEC+ sources said earlier Monday that they will hold a meeting on May 31, a day ahead of schedule. Novak also said that the G7 and the EU plan to tighten the Russian oil price cap from the current $60 per barrel to $50 per barrel, which is unacceptable, and these restrictions have failed to curb Russia's oil exports.

South Africa proposes to purchase U.S. liquefied natural gas to reach a trade agreement

South Africa proposes to purchase liquefied natural gas from the United States within 10 years as one of the proposals to ensure a trade agreement was reached, according to a ministerial statement posted on the website of South African government news agency. South Africa's goal is to export LNG from the world's largest liquefied natural gas annually, the document signed by South Africa's presidential minister Khumbudzo Ntshavheni and released later Sunday said South Africa's goal is to export LNG from the world's largest annual export of LNG from the United States.The country imports about 75 million to 100 million cubic meters of liquefied natural gas. This will release about $900 million to $1.2 billion in trade annually and $9 billion to $12 billion in trade within 10 years based on applicable prices. The proposed package also includes a tax-free quota for exporting 40,000 vehicles from South Africa each year, and a tax-free access to procurement of automotive parts for production in the United States from South Africa.

The US special envoy and the scepter denied that "Hamas accepted the ceasefire plan"

On May 26 local time, US special envoy for the Middle East Steve Witkov told the American Axios News Network reporter, "I am disappointed by the performance of the Palestinian Islamic Resistance Movement (Hamas) and is eouu.cnpletely unacceptable." He denied Hamas officials' statements about accepting his proposed ceasefire plan for Gaza. Witkov also said that Israel is ready to agree to a temporary ceasefire, allowing half of the living detained people and half of the remains to return to Israel, "and conduct substantive negotiations to find a way to a permanent ceasefire, and I agree to preside over the negotiations." In addition, in response to Hamas' acceptance of Witkov's ceasefire proposal, an Israeli official said "this is not true." The official said the negotiations were still in progress, and Israel has not agreed to anything, and it is not known that Hamas agreed to anything.

The above content is all about "[XM Group]: The situation in Russia and Ukraine still provides support for gold prices, and Trump postponed EU tariffs and the dollar fell after the dollar was dropped." It was carefully eouu.cnpiled and edited by the editor of XM Forex. I hope it will be helpful to your transactions! Thanks for the support!

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