Gold prices fell to a five-week low on Thursday, driven by a decrease in demand for safe-haven assets due to easing global trade tensions and geopolitical risks. Weaker US inflation data, suggesting potential Federal Reserve rate cuts, offered some counter-pressure but wasn’t enough to offset the overall bearish sentiment. Market participants are now awaiting further economic data releases to gauge the monetary policy outlook.
- Gold declined to around $3,140 per ounce.
- This represents a 2% drop from the previous session.
- Easing global trade tensions reduced demand for safe-haven assets.
- The US and China agreed to significantly cut tariffs and initiated a 90-day pause for a broader deal.
- President Trump indicated ongoing negotiations with India, Japan, and South Korea.
- Geopolitical risks eased with stabilizing India-Pakistan tensions.
- There is rising optimism that Trump may lift sanctions on Syria.
- Weaker-than-expected US inflation data reinforced expectations for possible Federal Reserve rate cuts.
- Traders await US PPI and retail sales figures for clues on monetary policy.
The value of gold is being affected by multiple factors. Positive developments in international trade relations and diminishing geopolitical concerns are reducing its appeal as a safe haven. While expectations of potential interest rate cuts by the Federal Reserve would typically support the asset, the overall reduction in global uncertainty is exerting downward pressure on its price. Upcoming economic data releases will be crucial in determining the direction of the asset’s valuation.