Gold price falls nearly 2% as trade hopes lift risk appetite

Sylvester Oppong Nyarko
1 Min Read

Gold prices dropped nearly 2% on Thursday, May 1, 2025, hitting a two-week low. Easing trade tensions and a stronger U.S. dollar reduced demand for safe-haven assets like gold.

Spot gold slipped to $3,222.66 an ounce, its lowest level since April 15. U.S. gold futures also fell 2.7%, reaching $3,230.

- Advertisement -

The U.S. dollar index rose by 0.3%. As a result, gold became more expensive for foreign buyers using other currencies.

UBS analyst Giovanni Staunovo said the market expects some trade agreements soon, which may help keep tariffs low. He noted that this optimism, combined with the stronger dollar, is pushing gold prices down.

President Donald Trump said on Wednesday that trade deals with India, Japan, and South Korea are possible. He also mentioned a “very good chance” of an agreement with China.

- Advertisement -

Meanwhile, a Chinese state media-linked account reported that the U.S. has asked China to resume trade talks over the proposed 145% tariffs.

In economic news, the U.S. economy shrank in the first quarter, the first contraction in three years. Businesses rushed to import goods ahead of tariff hikes, contributing to the decline.


Do you have any information to give us, press releases or news to publish? Please send them to editor@awakenews24.com

Share This Article
Leave a Comment