Gold keeps declining amid easing US-EU trade tensions

Gold prices declined slightly amid falling demand for safe-haven assets. Bloomberg experts attribute this drop to the prospect of improving trade relations between the United States and the European Union.

On Monday, Brussels announced its intention to accelerate negotiations with Washington to avoid a tariff confrontation. Following this statement, gold traded near $3,347 per ounce, down 0.4%.

Demand for safe-haven assets, such as the yellow metal, declined amid signs of progress in improving US relations with some of its trading partners. According to data compiled by Bloomberg, gold-backed exchange-traded funds recorded outflows for the fifth straight week. Earlier, in mid-April, inflows reached their highest level in more than a year.

However, markets are not ignoring other risks, including the growing US budget deficit, ongoing trade negotiations, and escalating geopolitical situation in the Middle East and Eastern Europe, the news agency reports. For instance, Citigroup Inc. raised its short-term gold price forecast to $3,500 per ounce. Investors are also anticipating the release of significant inflation data from the United States on Friday.