Gold price after low point: USA-China trade dispute brings recovery!

Gold price after low point: USA-China trade dispute brings recovery!

Gold prices experienced a notable decline at the start of the week, falling to their lowest level in a month. However, there was a slight recovery as a result, as investors' risk aversion waned due to positive developments in the trade dispute between the USA and China. The finance.net reports an agreement between the two countries that will lead to a reduction in mutual tariffs.

Under this deal, US tariffs on Chinese imports were dramatically reduced from 145% to 30%, while China reduced tariffs on US goods from 125% to 10%. This regulation applies for a period of 90 days and could ensure a temporary stabilization of the markets. Investors are now looking forward to key US economic data released this week. Of particular interest are Consumer Price Index (CPI) data on Tuesday and April retail sales on Thursday as they could provide clues to the Federal Reserve's future monetary policy stance.

Recovery and decline in gold prices

On Tuesday morning, gold prices for the June contract rose $34.40 to reach $3,262.00 per troy ounce. However, gold prices saw a noticeable decline on Thursday, falling to around $3,220 per troy ounce. This represents the lowest level since mid-April and shows a continuous decline over three trading days. Overall, the gold price lost around $68 during this time compared to the previous day, moving further away from its record high of $3,500, which was reached on April 22nd. This was despite positive market sentiment, which was influenced by signs of easing in the US-China trade conflict wallstreet-online.de.

China's willingness to hold talks with the US has also lifted market sentiment. At the same time, positive news, such as statements by US Treasury Secretary Scott Bessent, increased hopes for an impending trade agreement. However, this overall recovery in financial markets is weakening demand for safe-haven assets like gold, putting additional pressure on the price.

Development of the oil market

The oil markets are also showing mixed signals. After a price jump on Monday, oil prices experienced a respite. The downward pressure comes from concerns about global oversupply, particularly as OPEC+ members plan to increase output in May and June. In addition, US President Trump is signaling progress in nuclear talks with Iran, fueling expectations that US sanctions on Iranian crude oil exports will be eased. At the same time, talks between Russia and Ukraine are putting additional pressure on the price of oil.

Meanwhile, oil prices stabilized on Tuesday morning: WTI futures fell $0.03 to $61.92, while Brent futures fell $0.06 to $64.90. A weekly report from the American Petroleum Institute is expected on Tuesday evening to provide an update on inventory levels. A decline of 4.49 million barrels was reported last week.