Gold prices fell by more than 1% amid positive news regarding a potential de-escalation of the trade war between the US and China. In particular, China is considering the possibility of lifting tariffs on certain American goods, which has led to a decrease in demand for the precious metal.
This is reported by Finway
Spot gold decreased by 1.5%, reaching $3299.69 per ounce. Futures for this metal in the US also fell by 1.1%, settling at $3310.20.
The Impact of a Stronger Dollar on the Gold Market
The publication notes that a significant factor influencing prices has been the rise of the US dollar. According to reports, European stocks also rose following news of a possible tariff cancellation.
“The dollar has risen, as have European stocks, following media reports that China is considering tariff exemptions for some American goods, fueling hopes for de-escalation of the trade war between the two largest economies in the world. A stronger dollar makes bullion more expensive for foreign buyers”
, analysts note.
The Status of Other Precious Metals
Amid the decline in gold prices, silver fell by 0.6%, reaching $33.36 per ounce. Platinum dropped by 1.2% to $958.89, while palladium decreased by 1.6% to $938.78. Despite this, silver still shows a trend towards a weekly gain, while platinum and palladium have suffered losses over the week.
It is worth noting that this year, gold is traditionally viewed as a hedge against economic and geopolitical uncertainty, and during this period, its value has increased by nearly 26%. It reached a record level of $3500.05 on Tuesday.