Early this week, gold followed a typical “safe haven” pattern but then turned to drop back in price. During the first part of the week the price of gold skyrocketed, reaching as high as $3,433 per ounce which was the highest it’s been for a number of weeks.

This rapid increase was caused mostly by concerns about political tensions and the fact that many investors were turning to gold as a safe bet in light of the upcoming trade talks between the United States and Japan. The rally ended up not maintaining its early week momentum and fizzled out in the end. Despite its promising start the rally quickly lost grip and came to a stop.

Entering the middle of the week, the relaxing of trade tensions between the U.S. and Japan along with positive strides in U.S.-EU talks took away some of the shine from gold as a safe haven asset. Even so, the presence of a weakening U.S. dollar and a significant decrease in U.S. Treasury bond yields provided some support to soften the blow.

On the 25th of July, the spot price of gold landed at $3,336.01 per ounce marking a dip of 0.9% from the previous day. Bringing the week to a close gold made a modest 0.4% in net gain. In the same pattern, futures showed a slight dip in step with even greater drops seen each day. In summary prices wrapped up at approximately $3,336.40 per ounce showing a decrease of about 0.15% over the week.

Investors turned optimistic about trade which made them pull back on safe-haven investments. Gold eased from that resistance and moved away from the dollar as it showed weakness and looked towards lower bond yields for some technical backing. Gold price has stayed in a narrow range for nine weeks now. If buying interest diminishes we could see gold rise to 3,500 an ounce. Now turning their attention, traders eagerly await news from the Federal Reserve decisions on jobless claims and the release of S&P Global PMI reports.