Gold Slips Over 1% as Easing Tariff Concerns Pressure Safe-Haven Demand

Gold prices retreated sharply in Asian trading on Wednesday, as a slight cooling of U.S.-China trade tensions and signals of softer U.S. tariff policies sapped demand for the precious metal.

• As of 02:08 ET (06:08 GMT):
  • Spot Gold fell 1.1% to $3,308.93 per ounce.
  • Gold Futures expiring in June declined 0.8% to $3,322.55 an ounce.

This marks a notable pullback after gold recently touched record highs, buoyed by widespread economic and geopolitical concerns.

Easing Auto Tariffs, Renewed Trade Dialogue Weigh on Gold

The main catalyst for gold’s retreat:

• The Trump administration announced plans to ease the impact of auto tariffs by exempting duties on foreign parts used in domestically manufactured cars.
• According to a Wall Street Journal report, automakers will not be subject to extra tariffs on materials like steel and aluminum under the new plan.

Further improving sentiment:

• U.S. Treasury Secretary Scott Bessent stated in an interview that many countries had submitted “very good” tariff proposals.
• He also confirmed that the U.S. is in contact with China, although he noted it was up to Beijing to de-escalate tensions.

These developments cooled fears of escalating U.S.-Sino trade conflict — a major source of safe-haven demand — prompting investors to reduce gold holdings.

Broader Precious Metals and Copper Market Moves

• Silver Futures slipped 0.4% to $32.862 an ounce.
• Platinum Futures were flat at $993.20 an ounce.

Meanwhile, copper prices were subdued:

• Benchmark London Metal Exchange Copper Futures were unchanged at $9,392.20 per ton.
• Copper Futures expiring in May fell 0.8% to $4.8620 a pound.
• China’s government has pledged support for businesses hit by tariffs but stopped short of announcing new stimulus, adding to market caution.

Key U.S. Economic Data Awaited

Investor focus now turns to critical U.S. economic indicators:

• March JOLTS job openings report (later today).
• April Nonfarm Payrolls report (Friday).
• First-quarter GDP.
• March PCE Price Index — the Federal Reserve’s preferred inflation measure.

These data releases are likely to shape expectations for Fed interest rate policy in the coming months.

The Federal Reserve has so far maintained a wait-and-see approach, citing global trade uncertainty and the evolving inflation outlook.