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.

The United States and China decided to reduce import duties on each other’s goods for ninety days to de-escalate their trade war.

Due to increased geopolitical tensions in the Middle East, Eastern Europe, and India-Pakistan, as well as ongoing market uncertainty over U.S. trade policies, gold is up 2% on the week.

Gold prices are reaching unprecedented levels in 2025, and recent back-to-back advances indicate another parabolic price movement may be on the horizon.

President Donald Trump’s new tariff threat fueled demand for safe-haven assets, helping gold rise more than 1% to above $3370 (~Rs 96000), its highest level in almost a week.