Gold prices fell 2% on Thursday, landing at $3,220 per ounce.This marks the lowest level in two weeks.The drop followed easing global tensions and rising investor confidence.Demand for safe-haven assets like gold weakened significantly.
Trade Talks Improve.
President Donald Trump shared updates on trade negotiations.
He mentioned progress with India, Japan, and South Korea, this suggests a softer stance on tariffs.
Fears of a trade war are now easing.
U.S. Signs Resource Deal with Ukraine
The U.S. and Ukraine signed a major resource-sharing deal.
It gives U.S. companies access to Ukraine’s raw materials these include aluminum, graphite, oil, and natural gas.
The deal shifts focus from military aid to economic partnership.It’s expected to stabilize long-term geopolitical relations.
U.S. Dollar Gains Strength
Trade progress strengthened the U.S. dollar this week.
A strong dollar usually lowers demand for gold globally.
Gold becomes more expensive for holders of other currencies.
Investors Await Key Economic Data
Markets are watching for the U.S. jobs report.Strong employment data could lead to higher interest rates.
Higher rates make gold less attractive to investors.
Conclusion.
Gold may face more pressure in the near term.Reduced tension and stronger growth could limit gold demand.
Investors are shifting toward higher-yield assets and away from gold.
