The price of gold fell in early trading on Friday, marking its third consecutive day of losses. It hovered just above the $3,350 mark. The precious metal’s losses are attributed to a resurgence in risk appetite, fueled by optimism about a potential breakthrough in US-European tariff negotiations before Washington’s August 1 deadline.
The prospect of greater stability in global trade has improved sentiment in financial markets, triggering a shift in investment flows away from safe-haven assets like gold towards riskier assets such as equities—a dynamic that has pushed US indices to new all-time highs. Simultaneously, recent data continues to underscore the resilience of the US economy.
On Thursday, better-than-expected unemployment figures confirmed the assessment that the US Federal Reserve is unlikely to cut interest rates this month, which supported US Treasury yields and the US dollar—thereby creating headwinds for the non-interest-bearing precious metal.
Ricardo Evangelista – Senior Analyst, ActivTrades
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