Gold prices fall as US-China trade tensions ease: Should you buy the correction
Published on 14/05/2025 10:04 AM
Gold prices fall as US-China trade tensions ease: Should you buy the correctionSpot gold fell 0.4% to $3,234.32 an ounce by 0231 GMT. US gold futures declined 0.3% to $3,237.00 per ounce.By Anshul May 14, 2025, 10:04:57 AM IST (Updated)2 Min ReadGold prices fell on Wednesday, May 14, as easing trade tensions between the US and China dented safe-haven demand. Investors are now watching upcoming US inflation data for further clues on the Federal Reserve's rate path.
International gold prices dip
Spot gold fell 0.4% to $3,234.32 an ounce by 0231 GMT. US gold futures declined 0.3% to $3,237.00 per ounce.
Kyle Rodda, financial market analyst at Capital.com, said, “Positive developments in US trade policy are diminishing the appeal of gold in the short term. $3,200 is a critical support level.”
The US is reducing tariffs on low-value Chinese imports, according to a new executive order. President Trump has also ruled out restoring high tariffs, signaling progress in trade negotiations.
This has reduced investor appetite for safe assets like gold.
Domestic gold prices in India
In India, gold was priced at ₹9,661 per gram for 24 karat, ₹8,856 per gram for 22 karat, and ₹7,246 per gram for 18 karat gold, according to data from Goodreturns.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted, “Mutual tariff rollbacks have reduced safe-haven demand. ₹93,000 per 10 grams remains a strong support; ₹95,000 per 10 grams is the next resistance.”
US data in focus
The US consumer price index rose 0.2% in April, slightly below market expectations. Traders now await the Producer Price Index data due Thursday (May 15).
Market participants expect the Fed to begin rate cuts by September, with 53 basis points priced in for 2025.
Gold tends to perform well in a low-interest-rate environment and when inflation concerns persist.
Investment outlook remains positive
Vaibhav Porwal, Co-Founder of Dezerv, said, “Gold has doubled in the last five years and is trading at an all-time high. It continues to serve as a hedge against currency volatility and geopolitical risks.”
He highlighted three key reasons for gold’s strength:
Global tensions
Recession fears in the US
A weakening dollar
“Gold doesn’t require deep analysis or active monitoring. It adds stability to portfolios,” Porwal added.
He recommends a strategic allocation of 8–10% to gold in investment portfolios.
-With Reuters inputsContinue ReadingFirst Published: May 14, 2025 9:49 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsgoldGold investmentGold Pricesgold rates