AUS
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Highlights
- Gold prices retreat further from record highs
- Signs of easing trade tensions boost market sentiment
- US negotiates interim deals with Asian nations
Gold prices continued to slide, extending a recent retreat from last week's record levels, as global market sentiment improved amid easing trade tensions. The precious metal dropped as much as 1.6% to around $US3268 an ounce and has now shed over 6% after reaching an all-time peak above $US3500 last Wednesday.
The easing of trade tensions between the United States and several Asian economies has contributed significantly to the shift in investor focus. Encouraging signs from US trade negotiations suggest that punitive tariffs may not be imposed as initially feared. President Donald Trump indicated that another delay to proposed "reciprocal" tariffs is unlikely, fueling optimism that interim agreements could be finalized before the current 90-day grace period ends in early July.
Reports suggest that US officials have prepared a draft framework to manage upcoming negotiations, involving about 18 countries. The draft outlines common areas of concern, setting the groundwork for consistent and efficient discussions. This proactive approach hints at a strategic effort to maintain progress in global trade relations, which has, in turn, reduced demand for safe-haven assets like gold.
Spot gold for immediate delivery slipped 1.1% to $US3283.31 an ounce by mid-morning trading in Singapore, following a modest 0.2% decline recorded last week. Investors appeared more willing to re-engage with riskier assets, supported by hopes of economic stability and revived trade activity.
While gold mining companies like Newmont Corporation (NYSE:NEM) and Barrick Gold Corporation (NYSE:GOLD) had benefited from the earlier surge in bullion prices, the recent downturn may affect near-term momentum. Still, the broader outlook for these companies remains closely tied to ongoing economic indicators and global monetary policy shifts.
Other key players, such as Northern Star Resources (ASX:NST) and Evolution Mining (ASX:EVN), which had seen strong interest during gold’s rally, are also adjusting to the latest market dynamics. As trade discussions evolve, further market movement is likely, making it essential for market participants to monitor developments closely.
Gold’s retreat from record highs serves as a reminder of the metal's sensitivity to broader economic conditions. Continued negotiation progress could further ease safe-haven demand, while any setbacks might swiftly reverse the current trend. The coming weeks will likely remain a pivotal period for both gold markets and related equities such as AngloGold Ashanti Limited (NYSE:AU) and Regis Resources (ASX:RRL).
