Gold crashes 2% from record high as Trump tempers threats on China
Gold price (XAU/USD) falls 2% after reaching a record high at $4,379 earlier on Friday, tumbles below $4,250, sponsored by US President Donald Trump's comment that triple-digit tariffs on China are unsustainable. At the time of writing, Bullion prices hover at around the $4,230 - $4,240 range.
Bullion tumbles below $4,250 as risk appetite returns and Treasury yields climb
The Greenback is recovering some ground, a headwind for Gold prices. Yet the biggest move is seen at US Treasury yields, with the 10-year T-note yield up nearly three basis points. US President Donald Trump commented that elevated threatened tariffs on China were not viable and most likely would increase tensions between the two countries.
Trump added that he expects to meet Chinese President Xi Jinping in a couple of weeks in South Korea. Those comments added to an improvement in risk appetite and pushed precious metals prices lower.
Federal Reserve (Fed) officials had crossed the wires. St. Louis Fed Alberto Musalem supports a rate cut at the October meeting but remains totally committed to getting inflation to the 2% target. Earlier, Fed Governor Christopher Waller echoed Musalem’s comments, while Minneapolis Fed Neel Kashkari said that the economy is not slowing as much as we think.
Next week, the US economic docket remains almost empty, but the release of the Consumer Price Index (CPI) figures on Friday at 8:30 AM ET is widely awaited by market participants.
Source: FXstreet
