Hopes that negotiations between the EU and U.S. yield a trade deal are spurring optimism, resulting in decreased demand for gold.

Gold extended a decline as progress in talks between the US and key trading partners eased demand for haven assets. Bullion edged lower to trade near $3,365 an ounce — following a 1.3% loss in the previous session — after Bloomberg News reported the European Union could be ready to accept a 15% tariff on most of its goods going to the US.

Gold prices tumbled toward $3370 per ounce in Asia on Thursday, pressured by improved risk appetite as hopes of fresh trade deals between the US and major partners reduced

Gold futures edged lower after a three-day rally as the U.S.-Japan trade deal calmed market nerves, MUFG analysts said in a note.