Economic Data Not Improving, America Lowers Ego
The United States has begun to appear to lower its ego in reaching a tariff deal with China. According to reports from Bloomberg and the Financial Times, the Trump administration has reportedly tried to contact Beijing to start tariff talks, according to Chinese state-owned media outlets.
The Chinese government and media, which previously denied that there had been any communication between Washington and Beijing, have now begun to agree with what US officials have said, although some officials have stated that China is in no rush to negotiate and will not get involved unless the US takes meaningful action. However, it was added that there is no harm for China to negotiate if the US wants to.
The results of this growing optimism have clearly weighed on safe-haven demand and thus pushed Gold prices down. US GDP Contracts in Q1
The US economy shrank 0.3% in the first quarter of 2025, its first decline since early 2022. This was a sharp decline from the 2.4% growth in the previous quarter and missed market expectations of 0.3%. The results that will certainly make President Donald Trump have to think twice about continuing his trade war with almost all of his trading partners, because if this continues it will certainly burden the US economy in the future. So if we conclude the possibility of a trade agreement with China and other US trading partners seems likely to materialize in the near future. Where this will later raise the value of the Dollar and lower the price of gold again.
Source: (mrv@Newsmaker)
