Gold Prices Take a Step Back

After soaring to an unprecedented peak of $3,500, gold prices have begun to decline, marking a significant 3% drop. This shift comes as the market reacts to positive developments in US-China trade relations and reduced concerns over Federal Reserve policies.

Trade Relations and Federal Reserve News Influence Market

US Treasury Secretary Scott Bessent's optimistic remarks about nearing a reduction in trade tensions with China, coupled with President Donald Trump's retraction of his criticism towards Fed Chair Jerome Powell, have played pivotal roles in this market adjustment. Bessent described the ongoing tariff disputes as "unsustainable", signaling potential relief on the horizon.

Market Snapshot

As of 9:55 am ET, gold was down by 3.13%, trading at $3,275.94 per ounce. In contrast, silver saw a 1.20% increase, platinum rose by 1.51%, and palladium gained 1.04%, showcasing a mixed reaction across precious metals.