Gold Daily | Gold Prices Decline 5% to $3,336 Amid Eased Stagflation Fears and Tariff Optimism

【Latest Gold Price and Recent Trends】

Gold prices recently surged past $3,500 but have since declined over 5% to around $3,336. The rally was initially driven by "stagflation" fears, which eased following comments by President Trump suggesting reduced tariffs on Chinese goods and a softened approach towards the Federal Reserve.

【Technical Analysis】

Gold prices have retraced gains from earlier in the week, challenging key support levels. On daily charts, price corrections are expected with potential support at $3,200 and resistance at $3,500. Short-term charts indicate buying interest near $3,284, with sellers targeting $3,167.

【Market Sentiment and Economic Background】

Market sentiment shifted following President Trump's remarks about tariff reductions and optimism regarding a trade deal with China, which reduced risk aversion and pressured gold. The IMF's lowered economic growth forecasts for the U.S. and global economy, due to Trump's tariff policies, continue to impact market dynamics. Gold is viewed as a safe haven amid economic uncertainties, with its price rising sharply since the start of the year.

【Analyst Opinions】

Analysts remain divided; Claude Erb suggests the current gold rally lacks verifiable theories, drawing parallels to the post-2012 decline. UBS analyst Giovanni Staunovo predicts gold may return to $3,500 in coming months. JPMorgan anticipates prices surpassing $4,000 by 2026 due to ongoing trade tensions. Amid geopolitical uncertainties, gold's role as a hedge against inflation and economic instability is emphasized, though it faces short-term volatility due to shifting market sentiments.