(Alliance News) - Gold rose on Monday as investors weighed US debt and deficit risks, while they monitored the renewed US-EU trade tensions.

Spot gold was quoted at USD3,331.86 an ounce early Monday afternoon in London, up from USD3,329.50 at the same time on Friday. Silver firmed to USD33.34 an ounce from USD33.12.

The yellow metal hit an intraday best of USD3,366 an ounce on Friday after the US President Donald Trump threatened to raise tariffs against the EU to 50%, and as investors assessed the uncertain US fiscal outlook.

But the US president said Sunday the pause on steeper US tariffs against the EU will be extended until July 9 as trade negotiations continue.

Speaking to reporters before boarding Air Force One, Trump said he told EU chief Ursula von der Leyen in a "very nice call" that he would grant her request for the extension from the original deadline of June 1.

Rising tensions between the US and EU could easily spark a broader sell-off in risk assets, drive the dollar and US Treasuries lower, and send the euro, European sovereign bonds, and gold higher this week, Swissquote analyst Ipek Ozkardeskaya predicted.

"Trump blinked - again - and the markets cheered," deVere analyst Nigel Green said, adding: "But this isn't tactical manoeuvring, it's inconsistency dressed up as strategy. Allies see it. Rivals see it. Investors should be paying attention."

In other commodities, a barrel of Brent oil fetched USD64.60 on Monday, slightly up from USD64.51 on Friday. West Texas Intermediate crude inched up to USD61.32 a barrel from USD61.26.

The oil market traded firmer in Monday's session after Trump said he would delay the deadline for tariffs on EU goods until July 9, ING analysts Warren Patterson and Ewa Manthey said.

Trump had threatened to impose 50% duties on imports from the EU starting June 1.

Also, Russia stepped up its attacks on Ukraine, prompting Trump to say that he is considering sanctions against Moscow, which could put Russian energy flows at risk, Patterson and Manthey said.

"We're likely to hear lots of noise this week ahead of the Opec+ meeting on Sunday, 1 June, where the group will decide on output policy for July," ING analysts said.

Last week, there were suggestions that the energy alliance is considering another sizable supply increase, they said.

"We're assuming in our balance sheet that the group will agree to increase output by another 411k b/d in July. This should keep the market well supplied over the second half of this year," ING's Patterson and Manthey said.

Elsewhere, platinum was priced at USD1,092.53 an ounce on Monday, marginally up from USD1,093.24 on Friday. But palladium was quoted at USD987.14 an ounce, down from USD1,009.28.

The copper price rose to USD9,570.00 per tonne from USD9,461.50, but aluminium fell to USD2,448.00 from USD2,459.00.

By Artwell Dlamini, Alliance News reporter

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