Gold experienced a decline, nearing a one-month low, influenced by easing risk aversion in the market. Positive developments in U.S.-China trade relations, signaled by tariff reductions, dampened demand for the precious metal as a safe haven asset. Investors are also turning their attention to upcoming U.S. economic data releases, seeking further insights into the Federal Reserve’s monetary policy direction.
- Gold dropped below $3,230 per ounce.
- This marks a second straight day of losses.
- The decline is attributed to improved risk sentiment.
- Reduced demand for safe-haven assets followed a breakthrough in U.S.-China trade negotiations.
- The U.S. will cut tariff rates on Chinese imports to 30% from 145%.
- China will reduce levies on U.S. imports to 10% from 125%.
- The trade arrangement is set to last for 90 days.
- Investors are awaiting U.S. CPI figures and April retail sales data.
- This data could provide more clarity on the Federal Reserve’s policy path.
The current economic landscape suggests a shifting sentiment away from safe-haven assets like gold. Trade deal progress is encouraging investors to take on more risk, reducing the appeal of gold as a store of value. The forthcoming economic data releases in the U.S. will be crucial in determining the direction of the Federal Reserve’s monetary policy, which could further influence the price of gold.