Gold Prices Fall After Easing Trade Tensions
(MENAFN) The value of gold per ounce declined by approximately 3 percent, reaching nearly USD3,220 as of 0815GMT on Monday.
This decrease came shortly after the United States and China declared a resolution in their prolonged trade dispute.
The announcement of a mutual trade understanding prompted a downturn in the gold market.
In a joint declaration on Monday, the United States and China revealed that they had consented to a significant relaxation of previously enforced punitive duties for a preliminary period of 90 days.
This move signals a temporary truce in what has been an economically disruptive trade conflict.
According to the terms, the US is set to cut its levies on Chinese imports from 145 percent down to 30 percent, while China will similarly scale back its own tariffs from 125 percent to 10 percent.
These changes are scheduled to take effect by May 14.
The sharp reduction in duties is seen as a major step toward easing economic strains between the two leading economies.
Recently, the cost of gold had climbed to unprecedented levels, surpassing USD3,400 per ounce, largely driven by global uncertainty and rising trade frictions stemming from the United States’ tariff policy.
These elevated prices reflected investor concern over worsening international economic relations.
In early April, the United States made the decision to levy substantial duties on imports from all nations, setting a minimum rate of 10 percent.
This move further heightened tensions and contributed to the prior spike in gold demand, often viewed as a safe-haven asset in times of geopolitical risk.
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