XAU/USD: Gold Rebounds to Reclaim $3,300 as Traders Weigh Softening Trade Tensions

This time it’s Europe and the US making progress toward a trade agreement — Trump’s back-and-forth tariff game is paying off for risk assets. What about safe-haven assets?

🤔 Gold Seesaws on Risk Appetite

• Gold prices XAUUSD regrouped and bounced back Wednesday, recouping half of Tuesday’s 1.3% loss. The yellow metal is trying to figure out how to play the ongoing trade talks between the US and the European Union. Should gold bugs load up or sell off?
• Bullion reclaimed $3,300 earlier today, rebounding from a Tuesday bottom of $3,285 per ounce. It even scored a session high of $3,320 as some of the more-excited buyers couldn’t contain their enthusiasm for the shiny asset.
• What happened between yesterday and today? When risk sentiment goes back on the menu, gold gets sent to the kid’s table. Especially when equities, crypto, and even the US dollar are popping off. That’s Tuesday. But today, markets weren’t too confident about a trade deal.

📢 Trump’s Tariff Whiplash Boosts Optimism

• Just days after threatening 50% tariffs on all EU imports starting June 1, Trump pushed the deadline to July 9. That’s a five-week breather for markets to do what they do best — rally on hope.
• The move helped ease concerns about a transatlantic trade war, with investors snapping up stocks and dropping their defensive plays like gold and the Swiss franc.
• Some traders are betting that this is Trump’s classic bluff-then-bargain routine, and that a deal with Brussels could be next in line after the UK and China.

👀 Where Is Gold Headed Next?

• With gold now 5% below its all-time high and sentiment tuning to risk-on frequencies, bullion bugs are watching key support around $3,120. A clean break there could open the door to $3,050.
• But not everyone’s ready to throw in the towel — any signs of souring talks or a surprise inflation spike could bring the safe-haven crowd roaring back.
• On the flip side, gold has been striking lower highs on its way down from record territory. A break above the latest high of $3,366 could clear the way for fresh gains.