Trump's Shift in Stance Calms Market Concerns, Gold Prices Retreat from Highs

According to Jinse, spot gold fell for the second consecutive day after initially breaking the $3,500 per ounce barrier, due to what seemed like a conciliatory gesture from U.S. President Trump, prompting investors to take profits. During early Asian trading on Wednesday, gold prices dropped as much as 1.9%, having fallen 1.3% the previous day. Gold prices began to decline shortly after hitting an all-time high of $3,500.10 on Tuesday, as risk appetite improved, stock markets rebounded, and bond markets and the dollar stabilized.

After the surge in gold prices in April, investors started to take profits. Its 14-day relative strength index indicated that gold was in an overbought condition. Despite the two-day retreat, gold prices have still risen over 25% this year, bolstered by the demand for safe-haven assets amid trade tensions and a deteriorating economic growth outlook. Strong buying from central banks and investors in gold ETFs has also supported gold prices.