The gold prices have been on course for six months for their sharpest weekly decline, which is burdened by a stronger US dollar and the new optimism after a de-escalation of the trade voltages in the USA.

Spot Gold ran by 0.8% in early trade on Friday to 3,213.56 USD per ounce, which increased total losses to 3.3% this week – the worst weekly performance for the precious metal since November 2024.

While gold has still increased to 22% to a year, which is largely due to the fear of investors about the fluctuating guidelines for President Trump’s import tariff policy, the easier hinge tensions has caused retailers to reduce the engagement in safe Havenpalance values. The metal hit a record high of 3,300 US dollars per ounce four weeks ago.

In the meantime, the US dollar has increased by 0.4% this week and is on the right track for a fourth weekly gain in a row, supported by resistant economic data and the relocation of expectations regarding the interest rate policy of the Federal Reserve.

“The gold prices were exposed to strong sales pressure this week when the markets cheered a de-escalation in the US China Trading War,” said Ilya Spivak, head of global macros at Tastylive.

At the beginning of this week, the United States and China agreed to temporarily lower the tariffs imposed in April and to strengthen the investigation. Data from the USA also showed soft than expected producer prices and slowing down retail sales, while the inflation of consumers increased less than the forecast in April.

Gold, which was usually preferred in times of low interest rates and uncertainties, saw the demand when dealers interpreted the data and diplomatic breakdown as a sign of stabilization.

Nevertheless, analysts say that gold continues to enjoy strong structural support.

“On the positive side, gold price continues to attract buyers,” said Tim Waterer, Chief Market Analyst at KCM. “This shows that the precious metal is a preferred capital, whereby the global growth and inflation prospects still look pretty cloudy.”

In contrast, Bitcoin rose over $ 100,000 this week and recovered more than 25% compared to the six-month low of $ 76,000 in the last month because the risk appetite returned to the markets.

While the current correction of gold may be reflected in an improved short-term mood, macroeconomic clouds-in such a way of unusual trade dynamics, persistent risk of inflation and shifts from the central bank and the views for precious metals and global markets continue to be mixed.