Gold Futures Slide as Investors Drop Safe-Haven Assets
Gold futures slump on easing safe-haven demand, and investor positioning ahead of key U.S. inflation data. Futures are down 1.3% at $3,145.80 a troy ounce, its lowest level since April 10. The precious metal's appeal was dented by Monday's U.S.-China deal when both countries agreed to significantly reduce tariffs, sparking a risk-on mood in markets.
President Trump has also said Iran is close to agreeing to a nuclear deal, further weakening demand. Market focus now turns to U.S. Producer Price Index data, which will provide further clues as to the Federal Reserve's monetary policy outlook. The market is pricing in around 50 basis points of interest-rate cuts over 2025, which would be a boon for gold.
Source: Bloomberg