Overview

• Gold has dropped from its all-time high of $3,500 in mid-April to around $3,200, marking a 7% decline as market sentiment shifts.
• President Trump announced tariff relaxations on auto parts and imported vehicles, reducing safe-haven demand for gold.
• A strengthening U.S. dollar has made gold more expensive for foreign buyers, contributing to the pullback in prices.
• U.S. economic data revealed a 0.3% GDP contraction in Q1 2025 and weaker-than-expected job growth, fueling speculation of Federal Reserve rate cuts.
• Despite the recent dip, long-term support for gold remains strong due to robust central-bank purchases and record-high investment flows in Q1.