Gold Recovers Losses After Sharp Drop... Investors Await Trade Signals from Trump

Gold regained some of its losses today, Monday, after a week that saw a sharp decline from record levels exceeding $4300 per ounce, following statements from U.S. President Donald Trump that eased trade tensions between the United States and China, encouraging investors to move towards higher-risk assets.

The price of gold in spot transactions rose by 0.07% to $4252.27 per ounce, after falling about 1.8% on Friday, marking its largest decline since mid-May. Meanwhile, U.S. gold futures for December delivery increased by 1.5% to $4275.40 per ounce.

Despite its recent decline, the precious metal is still recording its best weekly performance since April, after touching a record level of $4378.69 per ounce earlier in the week.

Silver also rose in spot transactions by 0.3% to $52.08 per ounce, after suffering its largest daily loss since April, amounting to 4.4% on Friday, moving away from its historical peak of $54.47.

Gold, which does not yield returns, maintains gains exceeding 60% since the beginning of the year, supported by rising geopolitical tensions and expectations of U.S. interest rate cuts, along with strong purchases from central banks and declining confidence in the U.S. dollar.

Trump's recent statements that a 100% tariff on Chinese goods "would not be sustainable" contributed to calming the markets, as he indicated his intention to meet with Chinese President Xi Jinping soon, boosting hopes for easing the trade war.

Bank reports, including from HSBC, expect gold to continue its rise towards $5000 per ounce by 2026, driven by increasing global risks and growing institutional demand for the precious metal.