Gold prices rose in European trade on Thursday, resuming gains after a two-day hiatus as the price collected profits off recent record highs, with today’s advance bolstered by renewed haven demand as the dollar stalls.
US-China trade tensions remain a point of worry amid mixed signals from US President Donald Trump on his plans for the China tariffs.
The Price
Gold prices rose 2.4% today to $3367 an ounce, with a session-low at $3288.
On Wednesday, gold lost 2.75%, the biggest loss in 2025 on profit-taking away from a record high at $3500.
Gold was also pressured by a strong dollar rebound after positive remarks from Trump on Jerome Powell and China.
The US Dollar
The dollar index fell 0.25% today against a basket of major rivals following two days of gains and recovery.
Trump asserted the US goal of reaching a fair trade deal with China, however, he once more threatened new tariffs on Beijing if no deal is reached.
US Treasury Secretary Scott Bessent said Trump didn’t propose to unilaterally remove tariffs from China, asserting the US will not cut tariffs on China by over 100%.
Bessent said there’s no clear timeline for communications between both sides, with the process of complete trade rebalancing potentially taking two or three years.
The markets are beginning to see the Trump’s administration’s sensitivity towards the performance of the financial markets, with decisions such pausing reciprocal tariffs and backing off plans to sack Fed Chair Powell as reflections of such considerations.
US Rates
Chicago Fed President Austin Goolsbey said he hopes the US won’t turn into an environment where the Fed’s ability to set monetary policies independently from political pressure is undermined.
According to the Fedwatch tool, the odds of a May Fed 0.25% rate cut stood at 7%.
The odds of such a cut in June stood at 62%.
SPDR
Gold holdings at the SPDR Gold Trust rose 1.44 tons yesterday to a total of 949.14 tons.
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