According to BlockBeats, spot gold prices have fallen for the second consecutive day after initially surpassing the $3,500 per ounce mark. The decline is attributed to U.S. President Donald Trump seemingly adopting a conciliatory stance, prompting investors to take profits.
During Wednesday's Asian trading session, gold prices dropped by 1.9%, following a 1.3% decrease in the previous trading day. The price began to fall shortly after reaching a historic high of $3,500.10 on Tuesday, as improved risk sentiment led to a rebound in stock markets, stabilization in bond markets, and the U.S. dollar. Following April's surge in gold prices, investors started to realize profits, with the 14-day relative strength index indicating that gold was in an overbought state.
Despite the recent two-day decline, gold prices have risen over 25% this year, driven by trade tensions and deteriorating economic growth prospects, which have increased demand for safe-haven assets. Strong buying from central banks and gold ETF investors has also supported gold prices.