Gold Daily | Spot Gold Declines 1.66% Amid Easing Trade Tensions and Stronger US Dollar

【Latest Gold Price and Recent Trends】

Gold prices continue to weaken, with spot gold dropping 1.66% to $3272.76 per ounce, nearing its lowest point in a month. Recent trends show a decline due to easing trade tensions and reduced global risk sentiment, weakening gold's appeal as a traditional safe haven.

【Technical Analysis】

Spot gold has been trading between $3395.07 and $3255.94, showing volatility and a downward trend for two consecutive weeks.

【Market Sentiment and Economic Background】

The easing of US-China trade tensions has reduced the demand for gold as a safe haven. The US dollar index has rebounded, recording a rise on June 27, which pressures gold prices due to their inverse relationship. Despite higher inflation rates, consumer spending in the US has declined, highlighting economic concerns such as stagflation risk—where prices increase amid economic slowdown. Global stocks have improved, diverting funds from gold to risk assets.

【Analyst Opinions】

Analysts note that the short-term gold price is influenced by fluctuating trade tensions, US dollar movements, and uncertainty around Federal Reserve policy. While US macroeconomic data suggests an economic slowdown, current geopolitical stability limits gold's upward potential. Future market actions hinge on potential Fed rate cuts and US tariff decisions. Some economists point to worsening stagflation risks, yet commodities experts argue this environment may favor gold. Wells Fargo's economists suggest that consumers are feeling the impact of tariffs, shown by weakened spending patterns.