Gold Price Forecast: XAU/USD declines below $3,350 on hopes for trade deals

• Gold price loses momentum to around $3,330 in Tuesday's Asian session. 
• Trump unveiled new tariff rates, still open to additional trade negotiations. 
• The downside for yellow metal might be limited as central banks worldwide continue to buy gold. 

The Gold price ( XAU/USD) trades in negative territory near $3,330 during the Asian trading hours on Tuesday, pressured by a firmer US Dollar (USD). The precious metal edges lower on easing trade tension after US President Donald Trump announced an extension to the upcoming tariff deadline and suggested that he was still open to additional negotiations.

Market concerns eased after Trump hinted at the possibility of an additional trade deal and delays of the tariff deadline. Trump further stated that the August 1 deadline was "not 100% firm," signaling he remained open to continuing to tweak the rates. Optimism surrounding Trump's tariff policies lifts the Greenback and weighs on the USD-denominated commodities price, as a firmer USD makes Gold more expensive for foreign buyers. 

Gold traders will closely monitor further announcements in the White House's trade negotiations. Any signs of renewed trade tensions and fears of a global trade war could boost the safe-haven flows, benefiting the Gold price.

Furthermore, rising major central banks' gold buying might contribute to the yellow metal's upside. According to a new report from the World Gold Council (WGC), global central banks have picked up on buying gold in May compared to other months. China's central bank also added gold to its reserves in June for the eighth month in a row, official data from the People's Bank of China (PBOC) showed on Monday.

"The PBoC in particular has been diversifying foreign exchange reserves substantially and an uptick in uncertainty and geopolitical risk may speed up the process," said Zain Vawda, analyst at MarketPulse by OANDA.