Gold Set For 3% Weekly Drop
Gold prices slumped to around $3,220 an ounce on Friday, heading for a weekly drop of more than 3%, as easing global trade tensions dented its appeal as a safe-haven asset. The U.S. and China recently agreed to temporarily reduce tariffs for 90 days, easing concerns about the long-term impact of their trade conflict. Geopolitical risks also appeared to ease, with an India-Pakistan ceasefire holding steady. However, progress in negotiations between Russia and Ukraine showed signs of stalling. While inflation data usually supports the non-yielding metal, tame U.S. inflation data reinforced expectations that the Federal Reserve will cut interest rates at least twice this year. However, Fed Chair Jerome Powell warned that inflation could become more volatile in the future due to more frequent supply shocks, potentially complicating the central bank’s efforts to maintain price stability. (Newsmaker23)
Source: Trading Economics
