Friday, 12 September 2025
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Gold plunges below $3,300 as risk appetite surges on China trade deal, Middle East diplomacy
Saturday, 28 June 2025 01:36 WIB | GOLD |GOLD

Gold price tumbled over 1.50% on Friday amid an improvement in risk appetite, driven by several factors. The de-escalation of the Israel–Iran conflict, the trade agreement with China, and ongoing negotiations between the United States (US) and its peers to reach commercial deals were welcomed by investors, who had previously sought refuge in Bullion's safe-haven demand.

The XAU/USD trades at $3,274 after hitting a daily high of $3,328. On Thursday, the White House announced that the US and China have formally signed a trade agreement, effectively ending the ongoing "trade war." US Commerce Secretary, Howard Lutnick, said that additional deals are looming as the July 9 deadline approaches.

Regarding geopolitics, Iran has shown signs of flexibility, leaning toward diplomacy, as its representative in the UN said that Tehran is open to forming a regional nuclear consortium in the event of an agreement with Washington.

Adding to the upbeat mood is the possibility of the end of the Israel–Gaza war within two weeks, revealed Al Arabiya.

In the US, the Federal Reserve's (Fed) preferred inflation gauge, the core Personal Consumption Expenditures (PCE) Price Index, came in line with estimates in May but failed to show any progress toward disinflation.

Earlier, the Minneapolis Fed's Neel Kashkari commented that he still sees two rate cuts in 2025.

Source: Fxstreet

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