Gold has had a record year, which was a proof that investors worldwide surrendered to uncertainty and its impact on the economy. They moved to gold as a safe refuge from the wider market volatility.
The precious metal has grown more than 25% this year, which is a relatively better performance compared to the S&P 500, which is currently about 6% per annum.
On Monday, however, Gold saw a retreat for two main reasons. The first is due to the relief of US-China trade tensions, which positively influenced the risk of investors. Another reason is the decreased demand for precious metal with increased dollar strength.
Golden retribes after a month of significant upward upward momentum
According to TradingView, Spot Gold fell by more than 0.8% and currently has about $ 3,278.7 ounces. Bullion reached a record $ 3500.05 on April 22.
This autumn, the feelings of investors for so -called safe assets can also be partially associated.
Bitcoin, called Gold's digital version, considered many briefly a safe refuge, and has also seen a number of huge swings, some that put over $ 100,000 and others dragging it down.
Even the US Treasury, which is considered a famous property -free asset supported by the US government, has not been able to stay in the middle of the market movement, partly thanks to the Donald Trump policy trademark. Things came to mind when the President referred to the threats to the FED chair, causing a flight from US Haven transactions.
“It is probably fair to say that especially financial markets, and especially risky companions, feel a little better than April's frantic first week,” said.
The comments made from the White House last week are also optimistic about the US-China Trade Agreement, not all the Trade War.
The deal between the US and China is still in the air
US President Donald Trump has said that there are talks about tariffs with China. This information comes from days after the Trump administration also signaled the readiness of the trade war between the world's largest economy.
China quickly denied Trump's claim that the negotiations were held, although the Asian power house was releasing steep tariffs to some US imports on Friday.
Also refused Sunday US Treasury Secretary Scott Bessent upside down Trump's claim and he would know because he has been submitted as a key person in US trade talks with several countries.
Although he admitted that he had communicated with his Chinese colleagues at the International Monetary Fund meetings in Washington last week, he said they did not mention tariffs.
“I had communication with my Chinese colleagues, but it was more about traditional things like financial stability, global economic early warnings,” he revealed in ABC's “This Week”.
“I don't know if President Trump has talked to President XI, I know they have a very good relationship and a lot of respect for each other.”
Many participants of the International Monetary Fund and World Bank's spring meetings have also emphasized that the Trump administration was still in the conflict that trading partners' demands hit wiping tariffs.
If both countries have not reached an agreement, the fall of Gold may be short, as investors are likely to return to safety when things will escalate again.
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