Gold prices fall with the decline of geopolitical and commercial tension

Gold has decreased with its position as a safe haven due to indicators of progress on trade conversations between the United States and China, as well as some mitigation in the severity of geopolitical tension. And the prices of alloys fell 1.8% during the early trading in Asia to 3265 dollars per ounce, after weekly profits of $ 2.6, as investors focused on the results of the expected commercial talks between the two largest economies in the world. Two days after the talks in Switzerland, the United States and China reported “great progress” to calm the trade war, although none of the parties immediately announced specific measures. These states increased the price of the dollar, which made gold more expensive for most buyers. “We need to see tangible details during the upcoming sessions, and then we can estimate the volume of the potential drop in gold prices.” He added that any additional drop in secure port flow prices could push to a level of $ 3.100 per ounce. He continued: “Regarding any investor selling gold against the background of the positive news for commercial agreements, the first price target to be monitored is $ 3,100.” Robert Rene, head of goods and carbon research in “Westpack Bank Corp” in Sydney, said gold can test the minimum stream of $ 3.200 and $ 3.400 if trading talks between America and China are progressing. But he added that “any decrease to the level of $ 3200 or without it will be well supported, which paves the way for new record levels.” Before the registered haven on Monday, investors began to reduce their exposure to gold, as hedging reduces their luxury bets on the precious metal to the lowest level in more than a year, in light of the increasing optimism over the progress of the US commercial negotiations, according to the data of the “Term Committee for Commodities”. Nevertheless, the fear of the economic impact of Trump’s fees still supports gold, which was a 25% increase this year, which had the precious metal to a record level of about $ 3,500 an ounce, before losing some profits over the past few weeks. The precious metal was also supported by strong purchases of central banks and speculation activity in the Chinese market. A partial decline in geopolitical dangers Meanwhile, the ceasefire between India and Pakistan still seemed steadfast until Sunday, four days after the clashes that led the two core countries to an extensive war. Investors will also monitor Donald Trump’s efforts to make peace in Ukraine, who enter a decisive moment, with the invitation of Voludmir Zellinski to his counterpart, Vladimir Putin, to participate in this week’s talks. By 07:41 in Singapore, the immediate gold price fell 1.2% to $ 3,286.65 per ounce. The dollar’s Bloomberg index also rose 0.1%, and the silver fell, while palladium rose, and there was no significant change in platinum prices.