The price of Gold fell significantly during the last two days, reversing the gains made in the first half of the week, Commerzbank's commodity analyst Carsten Fritsch notes.

Gold is less in demand as a safe haven

"This morning, Gold is trading at just under $3,350 per troy ounce. Headwinds are coming from the easing of the trade conflict. A few days ago, a trade agreement was reached between the US and Japan, which could also serve as a blueprint for an agreement between the US and the EU."

"The resulting optimism led to an increase in risk appetite in financial markets, which was reflected in rising stock markets. In such an environment, Gold is less in demand as a safe haven."

"It is therefore noteworthy that the Gold ETFs tracked by Bloomberg recorded inflows of 20 tons in the first four trading days of the current week, with the majority of inflows occurring at the beginning of the week when the Gold price rose significantly."