Gold Retreats from Record High as Global Market Sentiment Improves

Gold prices fell by more than 1% on Monday, April 28, 2025, as investor risk appetite improved following signs of easing trade tensions between the United States and China, alongside a stronger dollar that added pressure on the yellow metal.
Spot gold dropped 1.4% to $3,272.89 per ounce after reaching a record high of $3,500.05 on April 22. U.S. gold futures also declined by 0.4% to $3,282.70 per ounce

Rising Dollar and Increased Risk Appetite Weigh on Gold Prices

A 0.3% rise in the U.S. dollar against a basket of major currencies further pressured gold prices, making the metal more expensive for holders of other currencies.
Analysts noted that comments from the Trump administration last week boosted hopes for a potential agreement to ease the ongoing trade dispute with China, leading to reduced demand for safe-haven assets like gold.
Financial markets have also shown slight signs of relief compared to the heightened anxiety experienced during the first week of April when the United States announced new tariffs.
President Trump indicated that talks with China were progressing positively, with his administration showing greater openness to easing the trade war with the world’s second-largest economy

As for other precious metals, silver dropped 1.2% to $32.70 per ounce, platinum fell 0.6% to $965.70 per ounce, and palladium declined 1% to $939 per ounce.
Despite the current decline, investors are closely monitoring the developments in trade talks and the global economic situation to assess the future trajectory of gold as a safe-haven asset