Gold Price Falls Below $3,200 on Renewed Risk Appetite

Gold Price Falls Below $3,200 Amid Strong Risk Appetite and Trade Optimism

Gold (XAU/USD) continued its downward move on Friday, sliding below the key $3,200 level during the European session. The drop follows renewed risk appetite in global markets, primarily driven by optimism surrounding a preliminary US-China trade deal. This reduced demand for safe-haven assets like gold, capping any attempt to extend Thursday’s rebound from monthly lows around $3,120.

Despite weak US macroeconomic data—particularly softer-than-expected Producer Price Index (PPI) and retail sales—which increased expectations for Federal Reserve rate cuts, the US Dollar (USD) remained subdued. However, this USD weakness has so far failed to lift gold prices, with investor focus shifting to equities and other risk assets.

Geopolitical risks remain in the background but have had limited impact on gold’s intraday movement. For now, bullish momentum in equities and positive trade headlines continue to dominate market sentiment, keeping gold under pressure.