The spot price of %Gold has fallen 4.5% over the past week and is now below $3,200 U.S. an ounce as improving U.S.-China trade relations diminish the appeal of safe-haven assets.
Gold’s price has declined 2% in the past 24 hours to trade at $3,183.76 U.S. an ounce. The price of bullion is now down 9% from its high of $3,500 U.S. reached in April of this year.
Investors had been piling into gold, sending the price to a record high, amid concerns of a global trade war and escalating import tariffs imposed by the U.S. government.
However, investors are now pulling back from gold after the U.S. and China deescalated their trade war and agreed to ongoing negotiations.
The decrease in the spot price of gold also comes as investors pile back into stocks, cryptocurrencies, and other risk assets amid improving sentiment.
Some analysts now say that gold could fall as low as $3,000 U.S. an ounce as Wall Street looks past the U.S.-China trade war.
However, many economists continue to warn of an economic recession in the U.S. this year, a development that could send investors running back into the safety of gold bullion.
