Gold prices edged higher as European trading opened, recovering part of the ground lost in the previous session — a movement that underscores strong support around the $3,300 level. The prior day’s losses followed a dramatic shift in tone from Washington, as the US backtracked on certain tariffs targeting China and President Trump reversed course on earlier perceived threats to the Federal Reserve’s independence — developments that had previously unsettled markets. This sudden U-turn prompted a rapid repositioning by investors towards riskier assets, with global stock indices rallying sharply. As risk appetite returned, traditional safe havens such as gold came under pressure, with many traders seizing the opportunity to take profits. However, the dip below $3,300 was short-lived. In early Thursday trading, gold prices rebounded as traders viewed the pullback as a buying opportunity. The precious metal’s haven appeal continues to attract investors amid a trading environment dominated by uncertainty. Rapid and unpredictable shifts in US policy are making long-term economic planning increasingly difficult, fuelling a more cautious market tone, and tilting gold price risks to the upside.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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