Analysts pointed out that given that the instability of the global economy is not as high as before, the attractiveness of buying gold to hedge has weakened.
Thorsten Polleit, honorary professor of economics at the University of Bayreuth, Germany, pointed out in an interview with information service provider Kitco that the improvement in the US economic outlook will continue to hit gold prices, and gold prices still have room for downward in the short term.
Gold prices fell this week, and closed down 1.18% at $3,202.77 per ounce on Friday (May 16). To sum up the performance of gold in one week, gold fell 3.67% this week.
The Trump administration in the United States has suspended most high tariffs since April 9. The United States and China also agreed to significantly reduce tariffs within 90 days from May 14.
(New York Comprehensive) China's breakthrough in trade negotiations with the United States has eased market concerns about the US economy falling into a recession, which has led to weakening gold prices.