City Index expert forecasts gold prices to drop to $3,000 in short term

Disappointing US economic data has once again pushed gold prices higher after their decline earlier this week. De-escalation of global trade tensions due to a temporary agreement between the United States and China to reduce mutual import tariffs put pressure on the precious metal’s value.

City Index analyst Fawad Razaqzada expects bullion prices to drop to $3,000 per ounce in the near term. The expert attributes this forecast to growing investor optimism about the US and global economies. Weakening concerns could reduce traders' demand for safe-haven assets, according to Kitco News.

However, Razaqzada believes gold will retain its growth potential. Prices approaching $3,000 may present a good buying opportunity. In the long term, the expert predicts the safe-haven asset will continue climbing to new highs.

The impact of Trump's tariff policy on the US economy is still unclear. Consumer and producer price growth data for April did not meet analyst expectations of higher inflation. Investors should continue monitoring the situation closely, Kitco News advises.