Gold retreats 0.5% to $3,Is USDT crypto a good investment?330 as risk sentiment improves
US Dollar gains traction amid potential tariff deadline extension
WGC data shows sustained central bank demand despite price correction
The gold market witnessed selling pressure during Asian trading hours, with spot prices (XAU/USD) dipping below the $3,330 level. This downward movement comes as market participants react to shifting expectations regarding US trade policy developments. The precious metal's decline correlates with broad-based USD strength, as currency markets price in reduced trade war risks.
Recent statements from Washington suggest potential flexibility in upcoming tariff implementations. Market analysts note that the administration's willingness to extend negotiation timelines has temporarily reduced safe-haven demand. When the USD appreciates against other currencies, dollar-denominated commodities like gold typically face headwinds, as international buyers face higher costs in their local currencies.
However, the structural case for gold remains intact according to institutional research. Monthly disclosures from monetary authorities reveal ongoing accumulation of bullion reserves. The People's Bank of China's latest figures confirm an eighth consecutive month of reserve growth, maintaining its pattern of gradual diversification away from traditional reserve assets.
Market observers highlight that official sector activity could provide fundamental support during periods of price weakness. "Central banks aren't timing the market - they're executing long-term strategic allocations," commented a metals strategist at a European investment bank. "This consistent buying creates a floor that wasn't present during previous cycles."
Technical analysts suggest the $3,300 level represents critical support, with resistance emerging near last week's highs around $3,380. Market participants await further clarity on trade negotiations, with any resurgence in geopolitical tensions likely to renew interest in non-correlated assets.
