Gold Prices Could Rebound Amid Fading Optimism Over US-China Trade Deal
Gold (XAU/USD) attracted fresh buyers during the Asian session on Thursday (4/24), reversing the previous day’s sharp decline and snapping a two-day losing streak to the $3,260 area or a weekly low. US Treasury Secretary Scott Bessent’s remarks on Wednesday suggested the current trade standoff between the US and China could drag on for longer. This comes on top of growing uncertainty over US President Donald Trump’s tariffs and their impact on the global economy, which helped revive demand for safe-haven bullion.
Meanwhile, the US Dollar (USD) struggled to capitalize on its two-day recovery from multi-year lows and turned out to be another factor supporting Gold prices. Additionally, prospects for more aggressive policy easing by the Federal Reserve (Fed) offered additional support to the non-yielding yellow metal. Meanwhile, investors remained hopeful about a possible US-China trade deal. This, along with easing concerns about the Fed’s independence, kept the risk-on tone positive and could act as a headwind for XAU/USD.
Source: FXStreet