Traders expect gold to rise further despite tariff pause-induced correction — Reuters

The US-China trade deal led to a slower growth of gold prices. Still, economists expect the yellow metal to rise further, Reuters reports. 

ActivTrades’ senior analyst Ricardo Evangelista believes de-escalation of global geopolitical tensions prompt investors to lose interest in the safe haven gold. However, he projects gold will reach new peaks, as risks remain high. 

Strategists at WisdomTree think gold prices will continue to grow as a result of strong demand from central banks and Chinese investors.

Last month, the inflow in the gold-backed exchange traded funds was the largest since March 2022. China-listed funds were leading the move, according to the World Gold Council. In April, the People's Bank of China added to its gold reserves for the sixth month in a row, Reuters reports. 

Analysts at UBS forecast gold to rise in the long term on the back of expected persistent geopolitical tensions, lower real interest rates, a weaker dollar, and steady demand from central banks.