Gold prices retreated on Tuesday, falling nearly 1% from a four-week high as the U.S. dollar (USD) gained strength and traders exercised caution ahead of a potential phone call between former U.S. President Donald Trump and Chinese President Xi Jinping. The renewed geopolitical focus, alongside currency dynamics, pressured the precious metal, traditionally viewed as a safe-haven asset during periods of uncertainty.
Gold prices slipped on Friday as the U.S. dollar (USD) strengthened and markets processed new trade-related headlines and macroeconomic signals. Despite a softer-than-expected inflation report in the United States, which bolstered hopes for potential interest rate cuts, gold failed to gain traction amid the rising greenback and cautious investor sentiment.
Gold prices experienced a notable decline of almost 1% on Monday following a significant development in U.S. trade policy. Former U.S. President Donald Trump withdrew his earlier threat to impose a 50% tariff on European Union (EU) imports effective June 1. This policy reversal alleviated concerns about an escalating trade conflict between the U.S. and the EU, reducing demand for gold as a safe-haven asset amid geopolitical uncertainty.
Gold prices declined at the start of the week after former U.S. President Donald Trump unexpectedly postponed a planned 50% tariff on European Union goods and set a new deadline of July 9 for reaching a trade deal. The move signaled a potential easing of trade tensions between Washington and Brussels, triggering a reassessment of safe-haven assets and dampening demand for gold.
Kalyan Jewellers $KALYANKJIL.NS, one of India’s leading jewelry retailers, is gearing up for a significant revenue boost in the current financial year. The company plans to increase its earnings by more than 25% as it accelerates its store expansion to cater to the growing demand for affordable luxury. Despite historically high gold prices, the company’s strategy of targeting middle-income consumers with lighter, less expensive jewelry has proven successful. This shift in consumer behavior is shaping the jewelry landscape in India, where Kalyan Jewellers is positioning itself to capitalize on emerging trends.
Newmont Corp $NEM, the world's largest gold producer, recently released its quarterly reports, surprising experts and investors alike. The high production costs for gold, reaching a nine-year peak, have become a significant focal point deserving of attention.
In times of global economic instability and trade tensions, gold prices are showing impressive growth. The ongoing trade war between the US and its key partners, coupled with the weakening US dollar, has significantly influenced the price of gold. Let's explore the main factors contributing to the increase in the precious metal's value.
Gold prices dipped on Friday as investors reassessed their risk exposure following the imposition of new tariffs by U.S. President Donald Trump. However, it is important to note that despite this decline, gold has been on an upward trajectory for the fifth consecutive week, reaffirming its status as a safe-haven asset during market volatility.
Recent developments indicate a modest but steady increase in gold prices. The rise has been driven by the weakening of the US dollar and significant flows into safe-haven assets against the backdrop of escalating global trade tensions. Market participants are closely monitoring signals from the US Federal Reserve regarding future interest rate policies.
Harmony Gold Mining Co., the largest gold producer in South Africa, has reported impressive financial results, buoyed by a substantial rise in gold prices. This achievement has enabled the company to increase net profit by nearly a third in the first half of the current fiscal year.
On Thursday, US stock markets faced a significant downturn due to ongoing uncertainties surrounding tariffs and disappointing forecasts from Walmart $WMT. This combination of factors dampened investors’ appetite for risk, leading to broad sell-offs. All three major US stock indexes ended the day in negative territory, with the Dow Jones Industrial Average suffering the steepest decline. Meanwhile, gold prices soared to record highs, underscoring a shift toward safe-haven assets amid growing instability.
On Tuesday, gold prices continued their upward trajectory, fueled by ongoing uncertainty surrounding the tariff policies of U.S. President Donald Trump. This environment has driven increased demand for safe-haven assets like gold, as global markets face heightened fears of a potential trade war.
