The price of Gold has come under considerable pressure in recent days, Commerzbank’s commodity analyst Carsten Fritsch notes.
Gold struggles to attract buyers despite recent price decline
“The significant reduction in reciprocal tariffs between the USA and China has reduced demand for Gold as a safe haven. The uncertainty triggered by the trade conflict had driven the Gold price from one record high to the next until April.”
“The safe-haven premium included in the price is now falling again. In addition, market participants have noticeably scaled back their interest rate cut expectations for the Fed, as the risk of a US recession has decreased due to the (temporary) agreement between the US and China.”
“All of this speaks in favour of a further fall in the price of Gold, especially as buying interest has not increased following the recent price falls – in contrast to previous falls.”