Gold Price Slips Below $3,350 as Trade Tensions Ease

Gold Price Slips Below $3,350 as Trade Tensions Ease

Gold (XAU/USD) edged lower in early Asian trading on Monday, falling to around $3,335 as easing global trade tensions reduced investor demand for safe-haven assets.

The drop comes after U.S. President Donald Trump announced over the weekend that he would delay the imposition of 50% tariffs on European Union imports until July 9. This move reverses his earlier threat to impose the tariffs starting June 1, calming fears of an imminent trade war and lowering gold’s appeal as a hedge against geopolitical uncertainty.

While the reduced tension between Washington and Brussels has temporarily pressured gold, ongoing concerns about inflation and potential recession in major economies continue to support the precious metal. Analysts also point to Wednesday’s upcoming FOMC minutes as a key event that could influence market sentiment and gold prices.

Investors will closely monitor further developments in U.S.–Japan trade talks and global trade dynamics. Any renewed signs of trade friction could quickly reignite demand for gold as a safe-haven asset.

Despite the current dip, the broader macroeconomic backdrop—characterized by fiscal risks in the U.S., persistent inflation, and cautious monetary policy—may help prevent a deeper decline in gold prices.