Gold Slips as Dollar Strengthens and US-China Trade Tensions Ease
Gold prices, which had earlier surged to a lifetime high due to the trade war led by United States President Donald Trump, are now showing signs of decline. On Monday, the price of gold slightly decreased as fears surrounding the trade conflict have begun to subside. A key factor contributing to this decline is the renewed strength of the US dollar against other major currencies.
As of 9:05 AM, in the June 5 contracts on the Multi Commodity Exchange (MCX), the price of 10 grams of gold dropped by 0.18 percent, trading at ₹94,818.
Internationally as well, gold prices saw a downward trend as tensions between the United States and China eased. The US Dollar Index rose by approximately 0.3 percent, which placed pressure on global gold demand. As a result, the cost of purchasing gold became more expensive for those using other currencies.
According to media reports, President Donald Trump stated that American officials were in talks with China in pursuit of a favorable trade agreement. However, he emphasized that he was not considering reducing tariffs on China without receiving significant concessions. Notably, on Friday, China exempted certain American imports from high tariffs, a move that drew attention.
Despite Trump’s assertions that trade agreement discussions were underway, China rejected these claims.