Gold drops below $4,000/oz – ING

FXStreet Insights Team FXStreet

Gold fell more than 3% yesterday to below $4,000/oz, as its correction from last week continued amid progress in US-China trade negotiations that reduced safe-haven demand, ING's FX analyst Chris Turner notes.

Gold drops over 3% below $4,000 on US-China trade optimism

"Just last Monday, gold hit a record high above $4,380/oz. A trade deal between the two countries could reduce some of the geopolitical tensions that have driven gold to multiple record highs this year. The slump in prices coincides with further outflows from gold-backed ETFs; last Friday saw the biggest outflow since May 2025."

"Even after today’s correction, gold is still up more than 50% this year, underpinned by strong ETF demand and central bank buying amid diversification. And central bank buying is likely to continue as the structural factors behind this year’s rally remain in place. The recent price pullback could even be seen by some central banks as a chance to increase their holdings."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.