FRANKFURT/LONDON (dpa-AFX) – The price of gold fell for the third trading day in a row on Tuesday, moving well away from its record high. On Tuesday morning, a troy ounce (around 31.1 grams) was temporarily trading at $3,930 on the London Stock Exchange, the lowest level in three weeks. Since the record high of $4,381 on October 20th, the precious metal has lost around ten percent of its value.
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As trading continued, gold traded slightly higher again at $3,935, still $46 lower than the day before. Market observers pointed to further profit-taking on the gold market. Recently, the prospect of an easing of the tariff and trade dispute between the USA and China has weighed on demand for safe investments, including gold. Ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday in South Korea, both countries have reached a preliminary agreement.
Despite the now significant fall from its record high, the precious metal has increased in price by around 50 percent since the beginning of the year. In addition to the flight to safe investment havens in the wake of geopolitical risks and the fear of the consequences of the US government’s aggressive tariff policy, speculation about falling interest rates and gold purchases by central banks have also driven up prices for months./jkr/nas