Gold price in free fall: trade conflict between USA and China hits investors!

Gold price in free fall: trade conflict between USA and China hits investors!

On May 14, 2025, gold prices fell following positive signals in the US-China trade conflict. Markets reacted to news that the US will cut tariffs on Chinese imports from 145% to 30% for a period of 90 days. At the same time, China reduced tariffs on US imports from 125% to 10%. This easing is leading to lower demand for safe-haven assets such as gold, pushing prices to a four-week low.

Gold prices fell by about $68 on Thursday to around $3,220 an ounce, the lowest level since mid-April. The drop over three trading days highlights the negative trend for gold investors as the price moves further away from the record high of $3,500 reached on April 22. Analysts are seeing positive market sentiment, boosted by China's willingness to hold talks with the US. US Treasury Secretary Scott Bessent raised hopes of a trade agreement.

Trade agreements and market dynamics

The markets' positive reaction to these optimistic signals led to a general recovery, reducing demand for safe-haven assets such as gold. However, there is reason to be concerned about the relief in the markets as economic uncertainties and geopolitical tensions remain. Experts such as Peter Grant of Zaner Metals emphasize that while progress in trade talks is reducing tensions, the market situation remains tense.

Despite the current wave of sales, experts continue to recommend gold investments. Tim Hayes and London Stockton of Ned Davis Research also recommend holding gold rather than selling it. Grant estimates that gold prices will consolidate between $3,500 and $3,200, with a small risk of falling to $3,165-$3,150. JPMorgan also sees a positive picture and predicts a gold price of over $4,000 by summer 2026 in the base scenario.

In summary, it can be said that the gold market is being strongly influenced by the easing of the trade conflict between the USA and China, while uncertainties in the economic environment continue to exist. Investors should monitor developments closely to make informed decisions.

For more information on this, see the articles from finance.net and wallstreet-online.de.