Gold Steady Above $4,000 After US-China Ceasefire
Gold prices held above $4,000 an ounce on Friday, consolidating earlier gains and halting a four-day losing streak. Although a tentative deal between the US and China sparked optimism, traders remained concerned about the long-term rivalry between the world's two largest economies. Gold rose 2.4% in the previous session but remained on track for a second straight weekly decline.
The truce reached after a meeting between US President Donald Trump and Chinese President Xi Jinping was expected to only temporarily stabilize relations, giving both countries time to reduce their strategic dependence on each other. However, tensions remain, with China's growing economic strength fueling long-term uncertainty and boosting demand for safe-haven assets like gold.
Despite the rally, the precious metal is down more than 2% this week, driven by expectations that the Federal Reserve will not cut interest rates further. Falling US Treasury bond yields have also reduced the appeal of non-yielding bullion. Furthermore, outflows from gold ETFs also reduced price support, with total gold ETF holdings falling for six consecutive days.
However, despite the temporary decline, gold has still posted a gain of more than 50% this year, driven by massive buying by central banks and investors seeking protection from market uncertainty. Spot gold prices rose 0.4% to $4,041.42 per ounce in Singapore, while silver and other precious metals also rose. (asd)
Source: Newsmaker.id
