Gold prices dropped to $3,300 per troy ounce after surpassing $3,400 earlier this week, approaching record highs, as noted by Carsten Fritsch, a commodity analyst at Commerzbank.
Trade talks between the US and China are scheduled for this weekend
“The downturn was triggered by news related to the trade dispute, as the first discussions between senior representatives of the US and China are set to occur in Switzerland this weekend. On Thursday, an announcement was made regarding the US-UK trade agreement.”
“This negative response in gold prices highlights how significantly the metal has been influenced by the tariff dispute initiated by President Trump. Expectations indicate that if an agreement comes through, resulting in tariff reductions or eliminations, it would greatly impact the market, particularly regarding the US-China situation.”
“Furthermore, it appears that the US Federal Reserve may have created some downward pressure on gold during a press conference following their meeting on Wednesday, as Chair Powell seemed to dampen expectations for any imminent interest rate cuts.”
