FX.co ★ Gold Snap 3-Day Winning Streak

Gold prices decreased by nearly 1%, settling at around $3,290 per ounce, as a result of traders seizing profit opportunities and the impact of a stronger US dollar, which dampened investor sentiment. The appreciation of the dollar has lessened gold's attractiveness as a safe-haven asset. However, ongoing concerns about US fiscal policy are bolstering long-term demand for the precious metal. Recently, Moody's downgraded the US sovereign credit rating by one level, highlighting the country's substantial $36 trillion debt liability. Market observers remain cautious about the potential for increased deficits if the tax reduction proposal put forward by President Trump is enacted into law. The bill has already progressed in Congress, sparking concerns about increased debt-financed expenditures. On a related note, data from Chinese customs revealed a 73% spike in gold imports in April, reaching an 11-month peak of 127.5 metric tonnes. This surge was driven by heightened demand and Beijing's decision to broaden import quotas amidst ongoing trade tensions with the United States.