Gold Falls Sharply Ahead Of US Session After US-China Agree To Major Tariff Cuts
Gold (XAU/USD) plunged more than 3.0% in early European trade and was heading towards $3,210 at the time of writing as talks between the US and China have yielded easy results for equity markets. China has agreed to lower its tariffs on the United States (US) to 10% from the initial 125%, while the US will reduce its tariffs on China to 30% from 145%, both for 90 days. The announcements triggered a risk-on wave in the markets, with investors fleeing safe-haven assets such as Gold.
US President Donald Trump on Friday hinted at the possibility that the talks could be productive and issued a general message to “buy stocks now” on his Truth Social Network. In this context, Gold has lost more than 8% from its all-time high of $3,500 reached on April 21.
Source: FXStreet