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- Gold reverses a two-day decline, climbing 1.5% amid renewed trade tensions.
- Trump eases tariff rhetoric, but China refutes negotiations and insists on complete removal.
- Expectations for a Fed rate reduction increase as yields decline and economic ambiguity grows.
The price of gold halted a two-day slide on Thursday, increasing by $50, a gain exceeding 1.50%, fueled by revived worries concerning the trade dispute between the US and China. Despite US President Donald Trump appearing to moderate his position regarding maintaining 145% tariffs on Beijing, XAU/USD is trading at $3,338, recovering 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 a potential agreement with Beijing, China is taking a firm stance, requesting 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 experiencing downward pressure, retreating from a four-day high against a group of six currencies.
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