Gold drops again as haven demand eases

Gold drops again as haven demand eases
More positive trade talks prompts bullion pullback.
MAY 15, 2025
By  Bloomberg

by Sybilla Gross and Yihui Xie

Gold extended its decline after falling more than 2% Wednesday on signs there will be fewer Federal Reserve rate cuts than previously anticipated, and as easing trade tensions between the US and China sapped haven demand.

Bullion fell by more than 1% to around $3,140 an ounce on Thursday, the lowest level in more than a month. Yields on US Treasuries climbed on expectations the Fed will lower borrowing costs later than thought due to an improving economic outlook following the US-China trade truce. Higher yields and rates tend to be negative for non-interest bearing gold.

Progress in trade talks also added to bearish headwinds for the precious metal, with China suspending a ban on exports of items with both military and civil applications — likely including some rare earths — to 28 US companies. The detente between the world’s two largest economies has reduced gold’s haven appeal and led to a sharp rebound in risk assets this week. 

There could be further unwinding of long positions in gold, said Christopher Wong, an FX strategist at Oversea-Chinese Banking Corp., said. While some support should come in around $3,050-$3,150 an ounce, “gold may risk a deeper pullback towards $2,950 levels” if the support breaks, he said. 

Gold is still up nearly 20% this year, however, with prices peaking at a record above $3,500 an ounce in April. Investors had feared trade tensions stemming from Trump’s tariffs could spur faster inflation and a slowdown in growth, or even a recession.

Spot gold was down 1.2% to $3,139.77 an ounce as of 1:19 p.m. in Singapore. The Bloomberg Dollar Spot Index edged lower. Silver also fell, after falling more than 2% in the previous session. Palladium dropped slightly, while platinum was steady.

 

Copyright Bloomberg News

Latest News

Devoe: record-breaking RIA M&A run led by private equity's consolidator comeback
Devoe: record-breaking RIA M&A run led by private equity's consolidator comeback

A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year—their highest share since 2021 according to Devoe & Company'.

Fintech bytes: Advisor360, Nitrogen unveil AI updates for advisor productivity
Fintech bytes: Advisor360, Nitrogen unveil AI updates for advisor productivity

Also, Advisor CRM announces a new data integration partnership to ease the pain of client onboarding.

Bank of America, Morgan Stanley earnings roll despite roiled markets
Bank of America, Morgan Stanley earnings roll despite roiled markets

Meanwhile, Merrill Lynch intends to continue building its alternative investment platform for wealthy clients.

David Fischer of Independent Financial Group talks culture, future growth
David Fischer of Independent Financial Group talks culture, future growth

The co-founder of IFG discussed with InvestmentNews the unique opportunity that remaining independent offers to build a successful firm.

Wealth Consulting Group taps veterans from Envestnet, Emigrant Partners for new advisory board
Wealth Consulting Group taps veterans from Envestnet, Emigrant Partners for new advisory board

Three industry leaders will join the hybrid RIA's president and LPL alum, Andy Kalbaugh, to help guide its organic and merger-based growth strategy.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.