Gold Rebounds as Investors Stay Optimistic About EU-US Trade Talks

Gold Rebounds as Investors Stay Optimistic About EU-US Trade Talks

Gold prices bounced back on Wednesday, rising to nearly $3,320 during the European trading session. This comes after a more than 1% decline in the previous session, as market sentiment shifted on increasing hopes that the United States and the European Union are moving closer to finalizing a long-anticipated trade agreement.

Despite improved risk appetite linked to potential breakthroughs in US-EU trade relations, gold — traditionally a safe-haven asset — found renewed support. The resilience in gold suggests that investors are still seeking hedges against lingering geopolitical risks and uncertain macroeconomic developments.

Fueling optimism, US President Donald Trump shared on Truth.Social that the European Union is now showing urgency in arranging trade talks. “I was highly pleased with the 50% Tariff imposition on the European Union, especially because they were 'slow walking'. I have just received word that the EU has called to arrange meeting dates in a rush. This is a good phenomenon, and I hope that they will,” Trump wrote.

In parallel, global attention is turning to upcoming macroeconomic events — most notably the release of the Federal Open Market Committee (FOMC) meeting minutes and the US Personal Consumption Expenditures (PCE) inflation data for April. Both reports are likely to offer further insight into the Federal Reserve’s policy trajectory and broader inflation trends.

Meanwhile, geopolitical tensions continue to simmer. Russian President Vladimir Putin has demanded that NATO formalize its commitment to halting further eastward expansion, adding a layer of uncertainty to global markets that could sustain demand for safe-haven assets like gold.

In this environment, gold remains supported by a mix of cautious optimism, geopolitical risk, and macroeconomic anticipation, keeping the precious metal firmly in investor focus.