Gold prices fell in early Friday trading, marking a third consecutive session in negative territory and hovering just above the $3,350 level. The precious metal's losses come amid a resurgence in risk appetite, fuelled by optimism over a potential breakthrough in tariff negotiations between the US and Europe ahead of the 1 August deadline set by Washington. The prospect of greater stability in global trade has improved sentiment in financial markets, prompting a shift in investment flows away from safe-haven assets such as gold and into risk-oriented ones like equities — a dynamic that pushed US indices to fresh all-time highs. At the same time, recent data continues to highlight the resilience of the US economy. On Thursday, better-than-expected jobless claims reinforced the view that the Federal Reserve is unlikely to cut interest rates this month, lending support to Treasury yields and the US dollar — and, in turn, creating headwinds for the non-yielding precious metal.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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