Gold Hovers Near 5-Week Low
Gold hovered near $3,180 per ounce on Thursday, holding a 2% drop from the previous session and reaching a near five-week low, as easing global trade tensions reduced demand for safe-haven assets.
The US and China agreed to significantly cut tariffs and initiated a 90-day pause to finalize a broader deal, while President Trump pointed to ongoing negotiations with India, Japan, and South Korea. Geopolitical risks also eased, with India-Pakistan tensions stabilizing and rising optimism that Trump may lift sanctions on Syria during his Middle East visit.
Meanwhile, weaker-than-expected US inflation data reinforced expectations for possible Federal Reserve rate cuts, typically supportive of non-yielding assets. Traders now await US PPI and retail sales figures for further clues on the monetary policy outlook.
Source: Trading Economics