Gold saw profit-booking as safe-haven purchasing eased after U.S. President Donald Trump announced he would postpone his intention to put 50% tariffs on imports from the European Union from June to July.

Amidst persistent concerns about the growing U.S. deficit, gold is still trading at about $3300 thanks to the dollar’s decline, which usually increases the precious metal’s allure as a safe-haven.

As investors looked for safe-haven assets, shifting from government bonds to gold in response to rising fears about the US fiscal outlook, gold climbed toward $3340 to reach a nearly two-week high.

Gold reached almost $3300, close to a two-week high, and continued its more than 2% advance, which was helped by escalating geopolitical threats and the US dollar’s ongoing weakening.

Gold is still struggling, and prices could drop this week as the market takes a wait-and-see stance as the initial reaction to the U.S. credit rating fades, and there is some hope that Ukraine and Russia could reach a truce.

Gold prices bounced up about $100 (~Rs 1500) from their intraday lows as investors appeared to be shifting back to safe-haven assets due to a slowdown in the pace of discussions between Russia and Ukraine and less-than-expected US data.

As global trade tensions eased, demand for safe-haven assets declined, causing gold to drop 2% and hit a low of over five weeks.

Following the U.S. and China’s agreement to significantly reduce tariffs, gold fell to its lowest level in almost a month, although it slightly recovered yesterday due to ongoing uncertainty surrounding the direction of trade talks.