According to reports from Jinshi Data, institutional analysis indicates that gold futures have plummeted due to the easing of trade tensions and a decrease in safe-haven demand. The strengthening of the dollar further dampened enthusiasm for gold as a safe-haven asset and made dollar-denominated commodities more expensive for international buyers.
The United States is likely to reach a trade agreement, and market optimism and risk appetite are on the rise. However, further losses may be limited as expectations for interest rate cuts have also been raised following a series of weak economic data released in the U.S., with the U.S. economy contracting by 0.3% in the first quarter. Lower interest rates typically stimulate demand for non-yielding gold.