Gold prices regained ground on Wednesday, bouncing back from recent losses as investors digested shifting signals from U.S.–EU trade talks. The XAU/USD pair rose to reclaim the $3,300 level, recouping nearly half of Tuesday’s 1.3% drop.
Bullion rebounded from a low of $3,285 per ounce to briefly hit an intraday high of $3,320, reflecting renewed interest in the safe-haven asset amid cautious optimism over global trade developments.
The recovery came as U.S. President Donald Trump postponed the implementation of proposed 50% tariffs on European Union imports. Originally scheduled to take effect on June 1, the deadline has now been extended to July 9 — offering markets a temporary reprieve and fueling a modest rally in equities, cryptocurrencies, and the U.S. dollar.
Gold, often viewed as a hedge against uncertainty, has been caught in the crosscurrents of changing risk sentiment. While equities surged on hopes of a deal, gold’s rally suggests that traders remain unconvinced about a near-term resolution or are hedging against the potential for talks to falter.
The yellow metal remains about 5% below its all-time high, and technical analysts are closely monitoring the $3,120 support level. A sustained move below this threshold could signal further downside toward $3,050.
However, resistance remains firm as well. Gold has posted a series of lower highs in recent sessions, and only a breakout above $3,366 would signal a potential return to bullish momentum.
Traders are watching for upcoming developments in trade negotiations, as well as macroeconomic indicators such as inflation data, which could reawaken demand for safe-haven assets.
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