Gold retreats from record high due to stronger US Dollar and easing US-China tensions

From Investing.com: 2025-04-28 05:51:00

Gold retreated from its record high of $3,500 last week, closing down by 1.5% at $3,282 due to a stronger USD and easing US-China tensions. China announced tariff exemptions for select US imports, but ruled out resuming trade negotiations with the US. Market participants are now focusing on key US economic releases this week to gauge the monetary policy trajectory and economic outlook.

The euro weakened last Friday amid a strengthening USD, raising concerns about a possible recession. This week, data for Germany and the Eurozone is expected to show continued moderation in inflation, potentially leading to additional ECB stimulus in June.

The Japanese yen strengthened by over 0.7% against the USD ahead of the BoJ meeting on 5 May. The BoJ is expected to keep interest rates unchanged at 0.5%, reflecting caution amid persistent inflation and external risks. Capital flows into the yen are increasing due to the belief that US exceptionalism is over, leading to yen strength.



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