Gold slides to $3,350 as US-EU trade tensions ease

Gold prices fell to $3,350 per ounce after climbing by almost 5% last week. This decline came after US President Donald Trump postponed the imposition of tariffs on EU imports until July 9, giving both parties more time to negotiate a trade deal, Bloomberg reports.

The ambiguous policy of the US administration have exerted upward pressure on gold prices. Bullion has risen by more than a quarter this year. Currently, the precious metal is trading at about $150 below its all-time high set last month, the agency notes.

According to experts surveyed by Bloomberg, a softer stance on trade would reduce demand for gold. However, the precious metal’s appeal as a safe-haven asset had strengthened earlier amid growing concerns about the US government’s fiscal position.

Meanwhile, Donald Trump’s tax bill has been approved by the House of Representatives and is now headed to the Senate. Agency strategists warn that the bill’s passage could further widen the US federal budget deficit.