Gold price growth stalled due to easing trade tensions between US and EU

Gold prices remain relatively stable on Wednesday. Investors' buying on the drawdown is holding back the fall in prices, but easing trade tensions between the US and the EU are preventing the market from further increase. This week, US President Donald Trump softened his rhetoric on imposing 50% tariffs on the European Union, delaying their implementation until July 9 to allow for further talks between the White House and the bloc's countries.

According to Tim Waterer, lead market analyst at KCM Trade, gold's dip below $3,300 has attracted buyers. However, the market is still generally optimistic despite the easing of trade tensions that restrains the demand for gold. As the expert believes, if the support level around $3,250–3,280 is maintained, the precious metal will have all chances for another breakthrough to the $3,400 mark in case of declining appetite for risky assets.

At the moment, market participants are waiting for the data on the core price index of personal consumption expenditures (PCE) in the US to be released on Friday. These figures may give clues on further dynamics of interest rates in the United States. Reduction in the cost of borrowing traditionally plays in favor of gold prices.