Gold prices have decreased by over 1%, influenced by a solid dollar and growing optimism regarding US-China trade relations, which has reduced the demand for safe-haven assets. The price of gold dropped by 1.1%, settling at $3,282.71 per ounce. The dollar index (DXY), which gauges the performance of the US currency against a selection of other major currencies, rose by 0.3%. This increase makes gold less appealing to investors holding other currencies.
According to UBS analyst Giovanni Staunovo, “The market perceives a potential easing in trade tensions and has fewer concerns about the Federal Reserve’s autonomy, which is currently diminishing the demand for safe-haven assets. With the Federal Reserve anticipated to lower interest rates later this year, we foresee gold prices revisiting the $3,500 per ounce mark.”
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