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- Gold reverses a two-day decline, climbing 1.5% amid renewed anxieties over trade tensions.
- Trump eases tariff rhetoric, but China refutes negotiation claims and insists on complete removal.
- Expectations for a Fed rate reduction increase as yields decline and economic ambiguity grows.
The price of gold rebounded from a two-day slide on Thursday, increasing by $50, or over 1.50%, as worries surrounding the trade dispute between the US and China resurfaced. Despite US President Donald Trump appearing to moderate his position on maintaining 145% tariffs on Beijing, XAU/USD is trading at $3,338, having recovered from a daily low of $3,287.
Market sentiment remains positive, with Wall Street showing gains. While investors appear encouraged by Trump’s openness to reaching an agreement with Beijing, China is taking a firm stance, demanding the elimination of all “unilateral” US tariffs and stating that no discussions have taken place with the US government.
The rise in gold prices is supported by the sharp decrease in US Treasury bond yields. The US Dollar Index (DXY) is also under pressure, retreating from a four-day high against a group of six currencies.
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