The price of gold has been under considerable pressure in recent days, says CommerzBank raw material analyst Carsten Fritsch.
Gold struggles for attracting buyers despite the recent price drop
“The significant reduction of reciprocal tariffs between the US and China has reduced the demand for gold as a safe refuge. The uncertainty caused by the commercial conflict had led to the price of gold from a historical maximum to another until April.”
“The safe shelter premium included in the price is falling again. In addition, market participants have significantly reduced their expectations of feat cuts by the Fed, since the risk of a recession in the US has decreased due to the (temporary) agreement between the US and China.”
“All this favors a new fall in the price of gold, especially because the purchase interest has not increased after recent price drops, unlike previous falls.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
