On Wednesday, May 14, gold prices declined due to the de-escalation of trade tensions between the US and China, which led to a decrease in demand for safe assets. As of 06:43 GMT, the spot price of gold fell by 0.5%, reaching $3,231.10 per ounce. US gold futures also decreased by 0.4%, amounting to $3,235.30.
This is reported by Finway
Experts’ Predictions for Gold Prices
Experts express opinions that further progress in trade negotiations between the US and its trading partners may lead to an even greater decline in gold prices.
“$3,200 is quite a critical support level”
, the publication noted.
The Impact of a Strengthening Dollar on the Gold Market
It is worth noting that on Tuesday, May 13, gold prices stabilized in Asian trading after tariff reductions between the US and China increased risk appetite and caused a drop in the value of the precious metal. However, any significant recovery in gold prices was restrained by the strengthening dollar, which surged sharply amid news of a trade deal between the US and China.