Why did it decrease to $ 3,300 despite the recession concerns?

Gold prices witnessed a sharp decrease to about 3300 US dollars after reaching its highest level last week, amid indications to calm global trade tensions, according to the “FX Street” platform.

American -Chinese negotiations calm the markets

US Minister of Agriculture, Brock Rollins, said on Sunday that the administration of US President Donald Trump is in daily talks with China on customs duties, which strengthened optimism to reduce tensions.
She pointed to progress in reaching new trade agreements with other countries as well.

Also read: The most precautionary countries and its impact on the economy

Why gold retreated?

According to “JB Morgan” strategic expert, the news about possible customs duties has improved market morale and led to a decline in gold prices below $ 3,300.

Possible stagnation and its impact on gold prices

Although the United States did not enter an official economic recession, economic indicators showed that it would happen, which supports the continued demand for gold as a safe haven.
Recent customs tensions have strengthened fears of economic shrinkage, which keeps gold strong in the short term.

Also read: Why is gold a safe haven yet despite its high prices?

The continued demand for gold with the slowdown of the economy

The International Monetary Fund issued warnings of increasing the risk of American recession due to commercial wars, prompting more investors to buy gold to protect their money from fluctuations.

Future expectations for the price of gold

Investors are currently following with interest:

• American GDP for the first quarter (Wednesday announcement)

• American job report for the month of April (Friday announcement)

This data will directly affect the movements of gold prices during the coming weeks, amid expectations that there are no significant decreases that threaten the precious metal holders.