Gold experienced a decline, marking its third consecutive session of losses, as positive sentiment surrounding US-China trade negotiations and a US-UK trade agreement diminished its safe-haven appeal. The Federal Reserve’s decision to hold interest rates steady while acknowledging rising risks also contributed to the downward pressure on the metal.
- Gold fell to around $3,290 per ounce.
- Optimism over US-China trade talks weakened demand for safe-haven assets.
- Officials from the US and China are expected to meet this weekend.
- The announcement of a US-UK trade agreement eased global trade concerns.
- The Federal Reserve kept interest rates unchanged.
- The Fed warned of rising risks related to inflation and unemployment.
- Fed Chair Jerome Powell indicated that a preemptive rate cut is not being considered.
- Gold is still on track for a weekly gain.
The asset faces headwinds from improving global trade sentiment and a cautious monetary policy stance. While geopolitical tensions often support its value as a safe haven, progress in resolving trade disputes reduces this demand. Furthermore, a central bank’s reluctance to cut rates preemptively suggests a potential dampening effect on future price increases. Despite these pressures, underlying factors may still support it.