The gold price rose by over 1% on Thursday and is trading above $3,300 again. Previously, the yellow metal had briefly fallen below this mark, despite signs of easing in the trade dispute between the US and China. Experts interpret the setback as a purely technical correction.
Technical Correction Offers Entry Opportunities
Spot gold climbed to around $3,333 per fine ounce on Thursday morning. This largely made up for the previous day’s setback. On Wednesday, the gold price had fallen below $3,300 due to profit-taking, after optimism about a possible agreement in the US-Chinese trade conflict temporarily made stock investors more confident. As recently as Tuesday, gold had marked a new all-time high at just under $3,500, before the rapid setback occurred.
Market analyst Kyle Rodda from Capital.com explained that the current strong volatility is mainly driven by technical factors and headline risks; however, as the fundamentals remain intact, investors continue to use setbacks as buying opportunities.
Michael Armbruster, co-founder of the brokerage firm Altavest, expressed similar views. According to him, there is no indication that the $3,500 mark was already the end of the line. The overarching trend continues to point upwards, and the market is simply undergoing a normal correction within an ongoing bull market.
Economic Risks Remain Present in the Background
Despite the recent signs of easing in the tariff dispute, US Treasury Secretary Scott Bessent warned that the currently high tariffs in trade with China are not sustainable and must be reduced before new negotiations. At the same time, the International Monetary Fund (IMF) warned that punitive tariffs could slow global growth and increase debt burdens. A slight decline in the dollar index also made gold cheaper for buyers outside the dollar zone.
Thus, the environment of economic uncertainty remains – a scenario in which gold as a safe haven continues to be the first choice for many investors.
