Gold pulls back from $3,500 record as China trade hopes spur profit-taking
Gold price retreats after hitting a record high at $3,500, but traders booking profits and improving risk appetite send the Bullion drifting lower, although US Treasury yields drop. At the time of writing, XAU/USD hovers near $3,400, down over 0.63%.
Breaking news from United States (US) Treasury Secretary Scott Bessent, who said that he sees a de-escalation with China, improved the market mood, which is a headwind for Bullion prices. Since the headlines, the yellow metal drifted lower by $50 from around $3,420 to $3,370.
Despite this, uncertainty about US trade policies and President Donald Trump’s attacks on the Federal Reserve (Fed) can boost demand for Gold and push prices higher. So far in the year, Gold prices have remained up almost 29% due to geopolitics and Trump’s swinging mood.
Last week, Chair Jerome Powell said the Fed would remain data-dependent and even flagged the chance of a stagflationary scenario, acknowledging, “We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension.”
Amid this backdrop and an uncertain economic outlook, investors flock to safety, as the flows of Gold ETFs are picking up, according to the World Gold Council (WGC).
Source: FXstreet
