Although the trade negotiation between the U.S. and China has eased the tension in the trade war, the investment in gold still heavily continues as its price rebounded. Investors are still concerned over US inflation and negotiation details.
For several months, the trade war between the world’s largest economies has created volatility that affects the economy negatively. However, the gold price rose to a new record as the metal can be considered a safe asset.
Still, the talk did trigger a sharp selloff for gold while US dollar and Treasury yields climbed. Nonetheless, gold later recovered as its price rose by 0.6% to above $3,250 an ounce. Silver and platinum prices also saw their prices increase as well.
The increase was caused by investors’ worries over two factors. First is the US inflation report for April amid trader scrutiny on how much tariffs affect costs. The second is the lack of detail in the trade negotiation between the U.S. and China. Any unexpected announcement could skyrocket the gold value.
