Gold prices edged lower in early trading Thursday, pressured by renewed optimism surrounding US-China trade negotiations.
The precious metal, long considered a refuge in turbulent times, is losing its shine as investor sentiment shifts back toward riskier assets.
Spot gold dipped 0.6% to $2,294.10 per ounce, while US gold futures slid 0.7% to settle at $2,301.40.
This marks the second consecutive session of losses, as reports of progress in trade talks between Washington and Beijing boosted appetite for equities and the US dollar.
The easing of geopolitical tensions has softened the demand for traditional safe havens like gold.
Market watchers note that traders are now pricing in a potential thaw in the long-standing trade standoff, which could fuel global growth and reduce the need for hedges against economic uncertainty.
“The safe-haven premium is slowly evaporating as diplomatic winds shift,” said Meera Patel, senior commodities strategist at AxisGlobal Markets. “Investors are rotating back into risk assets, leaving gold exposed to short-term selling pressure.”
However, analysts caution that the metal’s longer-term trajectory remains tied to broader macroeconomic factors, including inflation data, interest rate movements, and central bank policies.
With the US Federal Reserve expected to hold rates steady in its upcoming policy meeting, further downside in gold could be limited.
Still, the immediate tone in the market is clear: optimism is in, and fear is out—at least for now.
Read More Realated Blogs:
- Gold Rebounds as Dollar Slips, Demand Picks Up
- Dollar Dips as Trump Clashes with the Fed
- Gold Falls Below ₹96K on MCX; Silver Prices Dip
- Sensex Jumps 800 pts, Nifty Tops 24K in Market Rally
