Gold prices declined to approximately $3,310 per ounce on Tuesday, primarily due to diminishing demand for safe-haven assets as trade war concerns lessened. Optimistic comments from U.S. Treasury Secretary Scott Bessent and reports of President Trump potentially softening automotive tariffs contributed to this downward pressure. Market focus is now shifting towards upcoming U.S. economic reports, including GDP, PCE inflation, and nonfarm payrolls, which are expected to influence the Federal Reserve’s policy decisions.
- Gold dropped to around $3,310 per ounce.
- Easing trade-war concerns curbed demand for safe-haven assets.
- Treasury Secretary Scott Bessent noted “very good” tariff proposals from U.S. trading partners.
- China’s move to exempt certain U.S. goods signaled a willingness to de-escalate tensions.
- President Trump is expected to soften the impact of his automotive tariffs.
- Attention is shifting to U.S. economic reports, including Q1 GDP, March’s PCE inflation data, and April’s nonfarm payrolls.
The easing of trade tensions negatively impacts gold’s value by reducing its appeal as a safe harbor for investors. Favorable trade developments, combined with anticipation surrounding upcoming economic data releases, redirect investor attention away from precious metals and towards potentially higher-yielding assets, influencing gold’s price trajectory. This shift suggests that gold’s performance in the near term may be highly dependent on the actual economic data and any further signals regarding trade relations.