Gold is experiencing downward pressure, nearing its worst weekly performance in over two months, as signals of de-escalating trade tensions reduce demand for safe-haven assets. A potential resumption of trade talks between the US and China, coupled with positive remarks from President Trump regarding trade deals with other nations, have contributed to this decline. Economic data releases and anticipation of the upcoming nonfarm payrolls report are also influencing investor sentiment.
- Gold traded around $3,250 per ounce.
- It is heading for its worst week in over two months.
- Easing trade tensions are dampening demand for safe-haven assets.
- China is considering initiating trade talks with the US.
- President Trump suggested possible trade deals with India, Japan, and South Korea, and a “very good chance” of a deal with China.
- Trump signed an executive order to ease some tariffs on automobiles and auto parts.
- The US economy contracted in the first quarter.
- The PCE price index remained flat in March.
- Investors are awaiting the nonfarm payrolls report for insights into the Federal Reserve’s policy.
The diminishing appeal of gold stems from optimism surrounding global trade relations and potential economic growth. Positive developments in trade negotiations, particularly between major economic powers, alleviate investor concerns and shift focus toward riskier assets. While economic data points provide context, attention is mainly focused on upcoming employment figures which could further shape expectations for monetary policy.