Gold prices are ongoing due to their most acute weekly decrease in six months, overwhelmed by a stronger American dollar and a renewed optimism after a reduction in the reduction of US commercial tensions-China.
Spot was reduced to 0.8% in the first operations on Friday at $ 3,213.56 per ounce, which brought total losses this week to 3.3%, the worst weekly performance for precious metal since November 2024.
Although Gold has still won 22% in the year in which it will be held, largely driven by anxiety for investors on fluctuating import rates policies of President Trump, relieving geopolitical tension has led merchants to reduce exposure to safe assets. The metal reached a high record above $ 3,300 per ounce only four weeks ago.
Meanwhile, the US dollar has won 0.4% this week and is on the way to a fourth consecutive weekly gain, backed by resistant economic data and changing expectations around the interest rates policy of the Federal Reserve.
“Gold prices faced strong sales pressure this week when markets cheered a reduction in the war in the American-China commercial war,” said Ilya Spivak, Chief of Macro Global de Tastylive.
Earlier this week, the United States and China agreed to temporarily reduce tariffs imposed in April, which increases the feeling of investors. The US data also showed prices of more anticipated producers and a slowdown in retail sales, while consumer inflation in April increased less.
Gold, typically favored in periods of low interest rates and uncertainty, saw a reduced demand as merchants interpreted the data and diplomatic thaw as signs of stabilization.
Even so, analysts say that gold continues to enjoy strong structural support.
“On the positive side, the falls in the price of gold continues to attract buyers,” said Tim Water, KCM chief market analyst. “That shows that precious metal remains a favored asset, with the prospects for global growth and inflation that still look quite murky.”
In contrast, Bitcoin increased, $ 100,000 this week, recovering more than 25% of the minimum of six months last month of $ 76,000, since the risk appetite returned to the markets.
While Gold’s current correction can reflect an improved short -term feeling, macroconic clouds, including uncertain commercial dynamics, the risk of persistent inflation and the policy of the Central Bank changes the continnsus to maintain metals and the mixed world of perspective.
Jamie Young
Jamie is a senior reporter of Business Matters, who brings more than a decade of experience in commercial reports of the United Kingdom. Jamie has a business administration title and participates regularly in conferences and industry workshops. When he does not inform about the last business development, Jamie is passionate about the mentoring of promising journalists and businessmen to inspire the next generation of business leaders.
