Gold hits one-month low amid US-China trade truce

On Thursday, gold prices fell to their lowest level in over a month as the precious metals market faced pressure from easing trade tensions between the United States and China. 

The two nations reached an agreement on significant tariff cuts and announced a 90-day pause in their conflict. This temporary truce has alleviated concerns over a major confrontation between the world's two largest economies.

Investors are now focusing on the US Producer Price Index (PPI) report because they view it as a key indicator for evaluating the Fed's future monetary stance. In the midst of persistent global turbulence, the regulator is putting current interest rate cuts on hold while meticulously assessing the implications of Trump’s policies and the prevailing economic conditions prior to each meeting. 

Later today, Fed Chairman Jerome Powell is scheduled to deliver a speech. Market participants anticipate a 50-basis-point cut in borrowing costs by the end of the year, thus shifting their expectations from July to October.

According to Reuters, persistently high interest rates are diminishing gold's attractiveness as an investment.