The post Gold loses appeal as US—China tension eases appeared on BitcoinEthereumNews.com.

Gold has had a record-setting year, which was proof that investors all over the world were succumbing to uncertainty over the tit-for-tat tariff war and its impact on the economy. They were flocking to gold as a safe haven from the broader market volatility.  The precious metal has surged by more than 25% this year, a relatively better performance compared to the S&P 500, which is currently down about 6% year-to-date. However, Monday saw gold beat a hasty retreat for two major reasons. The first is due to easing US-China trade tensions, which positively affected investors’ risk appetite. The second reason is the reduced demand for the precious metal in the face of increased dollar strength. Gold retreats after months of considerable upward momentum Spot gold fell after hitting a record high of $3,500.05 on April 22. Source: TradingView According to TradingView, spot gold fell by over 0.8% and currently rests around $3,278.7 an ounce. Bullion hit a record high of $3,500.05 on April 22. This fall can also partially be attributed to souring investor sentiments toward the so-called safe-haven assets. Bitcoin, which was touted as the digital version of gold, was briefly considered a safe haven by many and an established hedge against inflation, has also seen several huge swings, some that put it above $100k and others that dragged it lower. Even US Treasurys, famously considered almost risk-free assets backed by the US government, haven’t been able to remain stable amid the market’s movements, thanks partly to Donald Trump’s brand of politics. Things came to a head when the president insinuated threats to dismiss the Fed chair, causing a flight from US haven trades. “It’s probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the…

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Filed under: News - @ April 28, 2025 11:19 am