FX.co ★ Gold Hovers Near 5-Week Low

Gold prices lingered close to $3,180 per ounce on Thursday, maintaining a 2% decline from the previous day and hitting a nearly five-week low. This shift was attributed to reducing demand for safe-haven assets amid waning global trade tensions. The United States and China made strides in trade negotiations, agreeing to substantial tariff reductions and initiating a 90-day pause to work towards a broader agreement. Additionally, President Trump highlighted ongoing negotiations with India, Japan, and South Korea, contributing to the easing tensions. Geopolitical situations also showed signs of stabilization, with diminished India-Pakistan conflicts and increased optimism regarding the potential lifting of sanctions on Syria during President Trump's Middle East visit. At the same time, weaker-than-expected US inflation figures have bolstered expectations for potential rate cuts by the Federal Reserve, a scenario typically beneficial for non-yielding assets like gold. Traders are now turning their attention to upcoming US Producer Price Index (PPI) and retail sales data for further insights into future monetary policy directions.