Gold has retreated about 6.5% from its all-time high as investors responded to signs of de-escalation in US-China trade tensions.
This pullback follows President Trump’s statement about substantially cutting tariffs on China, which triggered a recovery in global stock markets.
While gold has been a top performer in 2025—rising more than 25% on safe-haven demand and dollar weakness—analysts identify several short-term risks:
– fading risk-off sentiment
– technical overbought signals
– potential slowdown in purchases
– and changing liquidity conditions
Despite these challenges, many experts believe gold remains positioned for continued long-term strength due to persistent global economic uncertainties.