Precious metal Gold price falls sharply after agreement in customs dispute
There are signs of easing in the tariff conflict between the USA and China. Uncertainty on the market is diminishing and the safe haven of gold is less in demand.
12.05.2025, 10:29
SDA
The price of gold has fallen significantly following an agreement in the trade dispute between the US and China. The mood on the financial markets was generally upbeat at the start of the trading week, while safe havens such as gold were under pressure. In the morning, the price of a troy ounce (approx. 31.1 grams) fell to around USD 3,233 and was therefore trading around USD 91 lower than on Friday.
According to both countries, an agreement has been reached in Geneva in the negotiations on a trade agreement between the USA and China. For a period of 90 days, both countries will significantly reduce their tariffs on imports of goods. According to a joint statement, both sides want to ease trade tensions and give the world's two largest economies three more months to resolve their differences.
However, analysts do not expect further sharp falls in the price of gold. Commodities expert Robert Rennie from the Australian Westpac Banking Corporation expects that investors are likely to buy gold again at prices around the 3,200 dollar mark.
The gold price last reached a record high of 3,500 dollars per ounce in mid-April. At that time, the price of gold was driven primarily by concerns about the possible consequences of the aggressive US tariff policy.
