Gold prices continued their decline as global trade tensions eased slightly. President Trump extended the deadline for new tariffs, giving countries more time to negotiate and reducing immediate fears of a trade war. This softened demand for gold as a safe-haven asset. Spot gold dropped 0.3% to $3,292.50 an ounce, compounding earlier losses.
However, uncertainty remains. Trump hinted at possible tariffs on copper and pharmaceuticals, which could renew haven demand. Meanwhile, rising Treasury yields and scaled-back expectations for Fed rate cuts are also pressuring gold. Despite the recent dip, gold has surged about 25% this year, supported by central bank buying—especially from China, which just logged its eighth straight month of purchases.