Gold prices slid for a second day in Asian markets on Wednesday, pressured by signs of easing U.S. trade tensions. Spot Gold fell 0.4% to $3,305.10 per ounce by 02:30 ET, while June Gold Futures dropped 0.6% to $3,314.94. However, the yellow metal remains on track for its fourth consecutive monthly gain—up nearly 6% in April.
Investor sentiment shifted as the U.S. administration took steps to reduce the economic impact of its auto tariffs. President Biden signed orders that included temporary tariff relief and tax credits on imported auto materials. Additionally, Commerce Secretary Howard Lutnick hinted at progress in U.S.-China trade negotiations, stating a potential deal is “imminent.”
These developments have temporarily weakened demand for gold, a traditional safe-haven asset during geopolitical or economic unrest. Nonetheless, analysts at ING believe that lingering uncertainty and global instability will keep gold prices supported over the medium term.
Investors Await Crucial Fed Inflation Data
Economic indicators from the U.S. continue to paint a mixed picture. The Conference Board’s Consumer Confidence Index fell to its lowest point since May 2020, while the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) revealed a drop in available positions—from 7.48 million to 7.192 million in March.
Markets now turn their focus to three key data releases due this week:
- PCE Price Index – The Federal Reserve’s preferred inflation gauge
- Monthly Nonfarm Payrolls – A barometer of labor market health
- Q1 Gross Domestic Product (GDP) – A snapshot of economic growth
These figures will be critical for determining the Fed’s path on interest rates. So far, the central bank has maintained a cautious “wait-and-see” stance amid shifting economic and trade dynamics.
Copper Slips as China’s Factory Activity Shrinks
Industrial metals mirrored gold’s downward move. Copper prices retreated after China’s official manufacturing Purchasing Managers’ Index (PMI) fell to 49.0 in April, signaling contraction. That’s a drop from 50.5 in March and the first dip below 50 since December 2023.
- Benchmark Copper Futures on the London Metal Exchange: ↓ 0.5% to $9,379.55/ton
- May Copper Futures: ↓ 1.5% to $4.7875/pound
The decline reflects subdued industrial demand amid intensified U.S. tariffs on Chinese goods—reportedly as high as 145%.
As geopolitical pressures and macroeconomic data continue to influence investor behavior, gold’s long-term outlook remains closely tied to policy shifts and inflation trajectories.
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