Gold prices dropped around 2% on Friday, falling to $3,258.50 per ounce, as progress in global trade talks and easing Middle East tensions reduced demand for safe-haven assets.
The decline followed several positive trade developments:
– U.S. President Donald Trump announced a signed trade deal with China
– Trump hinted at a potential “very big” trade agreement with India
– Ongoing EU-U.S. negotiations may extend beyond the July 9 tariff deadline
White House spokesperson Karoline Leavitt indicated the tariff deadline could be extended, calling the date “not critical.”
Prices also fell due to reduced geopolitical risks after last week’s ceasefire between Israel and Iran ended their 12-day conflict. During the clashes, gold and oil prices had risen significantly as investors sought safe investments.
The combination of improving trade prospects and calmer Middle East conditions led to gold’s sharpest single-day decline in weeks. Market analysts suggest prices may stabilize if these positive trends continue, though any renewed trade tensions or geopolitical conflicts could reverse the downward movement.