Sharp drop in gold prices!
Following US President Trump's announcement of customs tariffs, gold fell 3.38 percent from its overnight record of 3,169 dollars to 3,062.10 dollars...
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Volatility in gold prices continues in connection with developments in global markets.
Gold prices began to decline as the euro/dollar parity showed its fastest increase in 10 years. Following US President Trump's announcement of customs tariffs, negative expectations regarding the US economy caused the dollar to lose value against other currencies. This situation benefited the Euro the most and impacted gold markets.
FITCH DOWNGRADES CHINA'S CREDIT RATING
Fitch estimates that China's general government deficit will rise from 6.5 percent in 2024 to 8.4 percent of GDP in 2025 on a consolidated basis.
The outlook for the credit rating was revised from "negative" to "stable" following the rating upgrade.
Growth, which was 5 percent in 2024, is projected to be 4.4 percent in 2025.
WHY IS OUNCE GOLD FALLING?
While gold investors follow ounce gold rather than gram gold, the rise in ounce gold began to decline due to the strengthening of the euro/dollar parity. Negative expectations regarding the US economy weakened the dollar against other currencies, which in turn supported the euro. The strengthening of the euro caused ounce gold to lose value and also negatively affected gram gold.