Gold reaches this price as demand declines and trade war tensions ease.
Gold fell during these moments of trading on Monday as investors' appetite for risk improved due to the easing trade tensions between the United States and China, which led to a decrease in demand for safe-haven assets like gold, while pressure also increased due to the rising dollar.
The dollar index rose against a basket of currencies, making gold more expensive for buyers holding other currencies. Tim Weller, senior market analyst at KCM Trade, commented: "It is fair to say that financial markets and risk assets in particular are feeling a slight improvement regarding the tariff picture now compared to the turbulent first week of April."
He added that statements from the White House last week boosted optimism about the possibility of a trade agreement between the United States and China, which led to a decrease in demand for safe-haven assets like gold.
It is worth noting that gold is traditionally considered a safe haven against economic and political fluctuations, and it usually thrives in low-interest-rate environments.
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