Risk appetite picks up, spot gold (XAU/USD) jumps above $3150
In the Asian morning trading session on Thursday, the international gold price (XAU/USD) gradually recovered and successfully recovered part of the lost ground, rising to about $3180. However, the short-term upside of gold prices may face some suppression due to factors such as increased market risk appetite and better trade negotiations.
The recent easing of global trade tensions has been a key factor in the price of precious metals. After two days of trade talks between the United States and China in Geneva, Switzerland, the two sides reached a tariff reduction agreement: the United States reduced tariffs on Chinese goods to the United States from 145 percent to 30 percent, while China reduced tariffs on U.S. imports from 125 percent to 10 percent. This progress has prompted investors to withdraw from the safe-haven asset sector, and the gold market has come under pressure.
Ole Hansen, head of commodity strategy at Saxo Bank A/S, noted that the current market risk sentiment has improved significantly, which has greatly weakened gold's safe-haven appeal. In addition, Iran's Supreme Leader Ali Shamkhani stated on Wednesday night that Iran is willing to sign a nuclear agreement with US President Donald Trump in exchange for the lifting of sanctions under certain conditions. This positive signal also depressed the price of gold.
