Gold price falls below $3,300 on strong US Dollar as Trump reignites China tensions
The post Gold price falls below $3,300 on strong US Dollar as Trump reignites China tensions appeared on BitcoinEthereumNews.com.
XAU/USD drops as strong US Dollar pressures Bullion; tariff uncertainty rattles markets. US core PCE dips in April, but strong data lifts yields, dampening Gold’s appeal. Trump accuses China of violating trade deal, reviving geopolitical and tariff concerns. Gold price slumped on Friday as the US Dollar recovered some ground despite witnessing a drop in US Treasury bond yields following a strong inflation report, which keeps traders hopeful that the US Federal Reserve (Fed) will ease policy in 2025. XAU/USD trades at $3,289, down 0.83%. Sentiment shifted sour as US President Donald Trump complained that China is not fulfilling the agreement negotiated between both parties in Switzerland. He wrote, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” Consequently, US equities fell, while the American Dollar recovered from near daily lows, according to the US Dollar Index (DXY). Turning to trade-related news, a US Federal Appeals Court reinstated most of Trump’s tariffs imposed on April 2, “Liberation Day,” following a decision by a US Court of International Trade, which blocked most of the duties as they were considered illegal. The US Core Personal Consumption Expenditures (PCE) Price Index dipped in April compared to March’s meeting. Other data showed that the University of Michigan’s (UoM) Consumer Sentiment in May’s final reading improved compared to estimates, while inflation expectations declined. Gold daily market movers: Tumbles despite soft US inflation data amid US Dollar strength Gold price is pressured due to a strong US Dollar.The DXY, which tracks the US Dollar’s value against a basket of six currencies, edges up 0.11% to 99.44. US Treasury bond yields are falling. The US 10-year Treasury note yield falls two basis points to 4.40%, while US real yields are also edging down by the same…
