Gold prices have fallen to their lowest level in three weeks, trading below $2,840. This decline is attributed to the uncertainty surrounding the Trump administration's trade policy, which is exerting pressure on the XAU/USD pair. As a result, XAU/USD is on track to end its eight-week winning streak, with month-end flows also influencing the precious metal's price movement.
The Trump administration has signaled the introduction of a 25% tariff on Canada and Mexico, which is set to be enacted next Tuesday. Although the tariffs are currently delayed, this impending deadline has contributed to market volatility and uncertainty. The lack of clarity on EU measures further complicates the situation, leaving investors on edge as they navigate these challenging market conditions.
The uncertainty about trade policies, particularly those involving major economies such as Canada and Mexico, has placed additional pressure on gold prices. Investors often turn to gold as a safe haven during times of economic and political instability. However, the current environment of uncertainty has instead led to fluctuations in gold's value.
The combination of trade policy concerns and month-end flows has created a complex landscape for traders and investors. As they attempt to navigate these shifting dynamics, many are left questioning how long this volatility will persist and what it will mean for gold's future performance. Despite the challenges, some analysts suggest that any resolution or clarity on trade policies could potentially stabilize gold prices.