US EditionGold plunges below $4,000 as U.S.-China truce erodes haven demand
Gold prices dropped 3.1% below $4,000 as US-China trade deal progress eased economic risks and reduced demand for gold as a safe haven, despite a 50% yearly gain.
- Last week, spot gold slid below $4,000 an ounce, extending losses as progress on a US-China trade deal sapped haven demand.
- The market's recent surge reflected the debasement trade and bets on Federal Reserve cuts, drawing retail speculators while gold remains up by more than 50% this year, supported by global central banks.
- At the London Bullion Market Association conference in Kyoto, nearly 1,000 professional gold traders, brokers and refiners cited $3,500 an ounce as a level that would be healthy yet ridiculously high.
- Central-Bank decisions this week include the Federal Reserve's forecast cut by 25 basis points, while the ECB and BOJ hold rates, affecting bullion investors' demand.
- Ole Hansen warned that gold is undergoing the long-overdue correction driven by positive trade noise, while John Reade said central bank demand has softened and a deeper correction might be welcomed by professional dealers.
22 Articles
22 Articles
The price of gold is being pushed down to levels below $3,900 per ounce (31.1 grams) in morning trading, representing an 11 percent decline since the historic high of $4,381.52 per ounce just over a week ago.
Expectations for negotiations in Asia grow. Markets toast and investors move to Bitcoin and more risky assets
Gold continues to be corrected, falling below $3,990 an ounce. This new fall accentuates the losses of precious metal, which registered a 3.2% decrease during Monday's day, motivated mainly by progress in negotiations between the US and China towards a trade agreement that would reduce the economic risks and geopolitical tensions that have marked the world agenda since Donald Trump's arrival at the White House.
The expectation of a US customs agreement with China continues to put pressure on the price of gold. On Monday, a fine ounce was traded well below $4,000. Risk-rich assets, on the other hand, are becoming more popular.
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