Spot gold falls around 1% to $3,316.49/oz

Spot gold falls around 1% to $3,316.49/oz

Spot gold prices experienced a notable decline, dropping approximately 1% to $3,316.49 per ounce on Thursday, June 6, 2025. This downturn comes after a brief period of higher trading, where gold prices had risen by about 0.6% earlier in the day [2].

The fall in gold prices can be attributed to the positive developments in U.S.-China trade relations. U.S. President Donald Trump and Chinese leader Xi Jinping agreed to further talks to settle trade disputes, which has led to a decrease in the perceived need for safe-haven assets like gold. This agreement has been seen as a positive sign, reducing the risk of imminent decoupling between the two economic powerhouses [2].

Despite the recent drop, gold has shown resilience and gained about 28% so far this year. This significant increase is largely driven by geopolitical tensions and economic uncertainty. Central banks worldwide are continuing to buy gold at an unprecedented pace, with a projected 1,000 metric tons of gold purchases in 2025 alone. This trend is part of a broader shift away from dollar assets, reflecting a growing preference for gold as a store of value [1].

The gold-silver ratio, which measures the relative performance of gold and silver, has also seen changes. Currently, the ratio stands at 94, down from 105 in April. This indicates that silver has been outperforming gold in recent months, with spot silver prices reaching a 13-year high of $35.45 [2].

Platinum and palladium also experienced price increases, with platinum reaching its highest level since March 2022 at $1,137.10 and palladium rising to $1,006.21. These metals are often used in industrial applications and as catalysts in automotive emissions control systems.

Investors and financial professionals should continue to monitor the gold market closely. The recent trade agreement between the U.S. and China could lead to further price volatility, especially as economic data, such as Friday's nonfarm payrolls report, comes to light. Additionally, the potential for a dovish Federal Reserve policy could provide further support to gold prices [2].

References

[1] https://www.lriko.com/
[2] https://www.business-standard.com/markets/commodities/xi-trump-call-signals-thaw-in-tensions-gold-dips-1-silver-at-13-yr-high-125060501456_1.html