Gold and Base Metals: Shifting Outlook Amid US-China Trade War De-escalation

After a strong start to 2023, gold’s surge to a record high of $3500 has slowed down. Initial momentum was driven by safe-haven demand amidst escalating geopolitical tensions and concerns over trade tariffs. Recent developments suggest that the worst-case scenarios have been averted, as global tensions ease and inflation fears recede. This shift towards more balanced market conditions for both gold and base metals like copper and aluminum is likely to influence short-term trading strategies.