Gold prices continued their downward slide for the third consecutive session on Thursday, as traders reacted to signs of potential progress in U.S.-China trade negotiations. Spot gold fell 1.5% to $3,240.30 per ounce in early Asian trading—the lowest level since April 16. June gold futures also dipped, shedding 2.1% to $3,248.64 per ounce.
This renewed risk appetite follows reports that the Trump administration is reopening trade talks with China. Market confidence grew after President Trump signed two executive orders aimed at reducing the impact of auto tariffs, coupled with remarks about possible trade agreements with India, Japan, and South Korea.
The softening geopolitical rhetoric has dampened demand for safe-haven assets like gold, which had recently touched record highs amid economic uncertainty.
U.S. Growth Contracts; Fed Stays Cautious
Investors are also weighing fresh signs of economic weakness in the U.S. Gross Domestic Product (GDP) unexpectedly shrank by 0.3% in the first quarter, based on government data released Wednesday. While this could support the case for a Federal Reserve rate cut, policymakers remain cautious due to the unpredictable trajectory of tariff policies.
The U.S. Dollar Index rose 0.3% in response, making gold more expensive for international buyers and further dragging on demand.
Key Economic Signals:
- U.S. Q1 GDP: -0.3% annualized contraction
- Dollar Index: +0.3%, hurting gold’s appeal abroad
- Federal Reserve stance: Holding rates amid trade uncertainty
- Upcoming data: Non-farm payrolls due Friday
These macro signals are being closely watched for hints on future monetary policy direction, particularly with inflation and employment trends in flux.
Silver Slips, Copper Gains on Trade Hopes
Other precious metals followed gold lower, though industrial metals saw mixed performance. Silver futures declined 1.3% to $32.115 per ounce, while platinum fell 0.7% to $963.65.
Copper, however, bucked the trend. Prices climbed on optimism around U.S.-Sino trade talks, which could boost demand from China, the world’s largest copper importer. Benchmark copper futures on the London Metal Exchange rose 0.5% to $9,165.05 per ton, and July futures gained by the same margin to $4.6365 per pound.
With most major Asian markets—including China—closed for holidays, trading volumes remained thin but sentiment showed signs of improvement.
Would you like a graphic comparing performance across major precious and industrial metals this week?