Gold prices retreated in Asian trading on Monday, sliding further from recent record highs amid signs of softening U.S.-China trade tensions. As of 01:54 ET (05:54 GMT), Spot Gold declined 0.8% to $3,292.75 per ounce, while Gold Futures for June delivery edged up 0.2% to $3,303.77 an ounce.
Last week, China announced exemptions for some U.S. goods from its steep 125% retaliatory tariffs, a move that sparked hopes for reduced tensions. President Donald Trump further fueled optimism, stating that trade talks with Beijing were progressing and that he had recently spoken with Chinese President Xi Jinping.
However, skepticism lingers. U.S. Treasury Secretary Scott Bessent contradicted Trump’s remarks on Sunday, saying he was unaware of any active negotiations. Beijing also refuted claims of recent talks. Despite mixed signals, the overall perception of easing conflict has dulled safe-haven demand for gold.
Other precious metals mirrored gold’s movement:
- Silver Futures dropped 0.6% to $32.807 an ounce
- Platinum Futures rose 0.5% to $977.55 an ounce
Investors Eye Critical U.S. Data
This week’s U.S. economic calendar is packed with key releases that could influence Federal Reserve policy and market sentiment. Investors are particularly focused on:
- April Jobs Report (Friday)
- Q1 GDP data
- PCE Price Index, the Fed’s preferred inflation gauge
These indicators will offer crucial insights into the health of the U.S. economy and the potential direction of interest rates. While the Fed has signaled a cautious, data-driven approach to future policy moves, stronger-than-expected results could temper expectations for rate cuts later this year.
The U.S. Dollar Index remained largely steady on Monday, reflecting a cautious market mood ahead of these pivotal updates.
In the backdrop of global uncertainties, this week’s data could set the tone for precious metal markets, influencing gold’s trajectory in the near term.
Copper Eases Despite China Stimulus
Copper prices edged lower on Monday, pressured by persistent U.S.-China trade frictions. Benchmark Copper Futures on the London Metal Exchange fell 0.2% to $9,389.0 a ton, while Copper Futures for May delivery dipped 0.4% to $4.8737 a pound.
Nonetheless, there are glimmers of support for industrial metals. Chinese state media reported that Beijing plans additional stimulus measures to bolster economic growth, aiming to meet its 5% annual GDP target. As the world’s top copper importer, China’s fiscal efforts could boost demand and stabilize prices.
Investors will continue monitoring developments in China’s economy and global trade negotiations, key drivers for both precious and industrial metals.