Gold Falls as Trade Tensions Ease
Gold fell to around $3,240 per ounce on Wednesday, giving back gains from the previous session, as easing trade tensions between the US and China continued to weigh on its safe-haven appeal.
The two countries agreed to temporarily reduce tariffs on each other’s goods for a 90-day period, soothing concerns over the prolonged impact of the trade conflict. Meanwhile, gold found some support after the annual US inflation rate eased to 2.3% in April—the lowest since February 2021 and below market expectations of 2.4%. The report is supportive of non-yielding metals, as it gives the Federal Reserve more leeway to proceed with potential interest rate cuts.
Elsewhere, gold ETFs recorded net inflows of 115 tons in April—the fifth consecutive monthly increase and the largest in over three years—driven mainly by nearly 65 tons from China, according to the World Gold Council.
Source: Trading Economics
