Gold prices experienced significant volatility on Thursday, initially dropping to $3,120 per ounce before rebounding by more than $100 during the day.
This movement was caused by two opposing factors: reduced demand for safe havens as US trade tensions eased, and weak US inflation data that strengthened expectations for interest rate cuts.
Commerzbank analyst Thu Lan Nguyen believes that trade conflict developments will ultimately have a stronger influence on gold prices than economic data, and predicts that if more trade deals are announced, gold prices will likely continue declining.
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