Gold prices have retreated from a one-week high, trading slightly above $3,100, despite a prevailing risk-on sentiment. Safe-haven demand persists due to ongoing US-China trade tensions and expectations of multiple Federal Reserve rate cuts in 2025, which are weighing on the US Dollar. These factors continue to support gold, offsetting the impact of improved risk appetite. Market participants are now awaiting the release of US CPI data, which is expected to provide further insights into the Fed’s monetary policy trajectory and influence both the USD and gold prices.
