Gold prices continue to decline despite Federal warnings of inflation risks.

Gold prices continued to decline during trading on Thursday, May 8, with futures of the yellow metal dropping by 0.8% to reach $3364.9 per ounce, despite warnings from the Federal Reserve about rising inflation risks and increasing unemployment rates.

This decline followed gold losing over 1% of its value yesterday, after the Fed's decision to keep interest rates unchanged, while pointing to growing economic challenges. The US central bank confirmed in its statement the observation of rising inflation risks and weak employment indicators.

In this context, Federal Reserve Chair Jerome Powell stated that "tariffs are higher than expected," warning that "continuing significant tariff increases as announced will lead to high inflation rates and low employment rates." However, Powell emphasized that current economic conditions do not allow for preemptive interest rate cuts, stressing that "the President's calls for rate cuts do not impact our actions within the Fed in any way."

On another note, US President Donald Trump indicated that China initiated the call for high-level trade talks between the two countries, stating that he is "not ready to reduce import duties on Chinese goods as a means to attract Beijing to negotiations."

In a related development, a report published by the New York Times predicted that Trump will later announce a new trade agreement between the United States and Britain today.

Meanwhile, Kyle Roda, a financial markets analyst at Capital.com, commented in statements reported by Reuters, saying that "Trump's tough stance on trade negotiations with China negatively affects market sentiment."

Global markets are closely monitoring US economic statements and policies, amid concerns about their implications on financial stability and global growth.