US-China trade talks reduce safe-haven demand, gold posts its worst weekly performance in nearly four years.

Gold futures fell more than 1% on Friday, marking the worst weekly performance in nearly four years. The reason is that the easing of tensions in the US-China trade relationship has eliminated some uncertainties in the global market and revived risk appetite, leading to profit-taking in the gold market this week. Data shows that Comex gold futures for the near month fell 4.6% this week to $3182.00 per ounce, the largest weekly percentage decline since the week of June 18, 2021; Comex silver futures for the near month fell 1.6% this week to $32.158 per ounce. Positive trade negotiations between China and the US, as well as agreements reached by President Trump during his trip to the Middle East, are alleviating concerns of a recession in the US economy. While many analysts expect gold prices to continue to fall in the short term as the US-China trade war de-escalates and global geopolitical tensions ease, some believe that gold prices will rise again soon. Ole Hansen, an analyst at Saxo Bank, said, "We need to see economic data starting to support the view that tariffs are having a negative impact on the economy. This will not only increase pressure on the Fed to cut rates, but may also trigger some new safe-haven demand for gold." Although the price of gold has dropped more than $300 from the historical high set last month, gold prices have still risen by 21% year-to-date, driven by rebounded demand for gold ETF products, strong central bank buying, and speculative demand.