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Gold prices slumped further in Asian trading on Thursday, falling for a third consecutive session, as renewed optimism around potential U.S. trade deals sapped safe-haven demand for the precious metal. Spot gold fell 1.5% to $3,240.30/oz, while June futures lost 2.1% to $3,248.64/oz—marking their lowest levels since mid-April.
🔍 Key Drivers Behind Gold’s Drop
1. Trade Negotiation Optimism
- Reports from Chinese state-affiliated media confirm that the Trump administration has reached out to Beijing to reopen trade talks.
- Trump also hinted at progress on potential deals with India, Japan, and South Korea.
- This easing in global trade tensions diminishes demand for gold, which typically gains during geopolitical or economic turmoil.
2. Soft U.S. GDP Data + Fed Uncertainty
- U.S. GDP unexpectedly contracted 0.3% in Q1, raising recession concerns.
- While weak growth could support rate-cut speculation, the Federal Reserve remains cautious, citing tariff-related uncertainty.
3. Stronger Dollar Adds Pressure
- The U.S. Dollar Index rose 0.3%, making gold more expensive for international buyers and compounding downward pressure on bullion.
📉 Outlook for Friday: Non-Farm Payrolls in Focus
Investors are now awaiting the U.S. jobs report due Friday, which could further shape expectations for the Fed’s next move. A weaker-than-expected labor print may reignite bets on monetary easing and offer some support for gold. However, signs of economic stabilization could keep pressure on prices.
🔩 Other Metals
- Silver: ↓ 1.3% to $32.115/oz
- Platinum: ↓ 0.7% to $963.65/oz
- Copper: ↑ 0.5% to $9,165.05/ton
(lifted by optimism in China, despite thin volumes due to regional holidays)
