Gold prices have retreated to approximately $3,310 following indications from U.S. President Trump regarding advancements in trade discussions between the United States and Japan. The ongoing U.S.-China trade dispute is expected to limit downward price movement. Progress in U.S.-Japan trade negotiations, coupled with hawkish statements from Federal Reserve Chairman Powell, have provided support to the U.S. Dollar. The Gold price (XAU/USD) experienced a minor correction to around $3,312 during Thursday’s European session, after reaching a new record high of $3,358 earlier in the day. Profit-taking activity is observed as tangible progress in trade negotiations between the U.S. and Japan alleviates concerns about potential global economic instability. President Trump communicated via TruthSocial on Wednesday, “A Great Honour to have just met with the Japanese Delegation on Trade. Big Progress!” This positive development suggests the U.S. President has strategically employed tariffs to gain leverage in bilateral trade agreements, contributing to a marginal reduction in global market uncertainty. Nevertheless, investors are advised against aggressive short positions in Gold, as the intensified U.S.-China trade conflict is likely to sustain risk aversion. Precious metals typically benefit from heightened global economic tensions.
