Gold prices have retreated from record highs, trading with a slightly negative bias around $3,220 during the European session, as improved risk appetite prompts profit-taking. The initial surge to record levels was driven by safe-haven demand amid ongoing US-China trade tensions. Despite the current pullback, a bullish outlook persists, supported by expectations of Federal Reserve rate cuts, concerns regarding a potential US recession, and a weakened US Dollar. The anticipation of monetary easing is underpinned by anxieties surrounding the economic impact of tariffs. Consequently, any further price declines are anticipated to be limited and viewed as potential buying opportunities, advising caution for short positions.
