Gold prices have fallen approximately 6-7% from their record peak of $3,500 per ounce amid a recent global risk-on rally. This recovery in market sentiment follows a reduction in geopolitical and tariff-related uncertainties over the past week.
The metal’s retreat comes as optimism grows around a potential ceasefire between Russia and Ukraine. Following a two-hour phone conversation between US President Donald Trump and Russian President Vladimir Putin, efforts to negotiate peace appear to be advancing, contributing to reduced demand for gold’s traditional safe-haven status.
Market analysts note that gold’s price correction also reflects easing concerns over US-China trade tensions, with investors shifting focus toward more risk-friendly assets. Earlier in April, gold surged above key psychological levels, driven by heightened global uncertainty caused by tariff announcements and geopolitical strains.
On commodity exchanges, gold futures and spot prices have softened, tracking the broader shift in investor sentiment. Despite this pullback, analysts warn that gold remains sensitive to changes in geopolitical dynamics and economic risks, which could quickly reignite buying interest.
