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Gold prices slid to a one-month low in Asian trading on Thursday, continuing a recent losing streak as markets digested the impact of the U.S.-China trade deescalation. A stronger dollar, higher Treasury yields, and anticipation of key U.S. economic data further dampened sentiment toward the yellow metal.
As of 01:09 ET (05:09 GMT), spot gold fell 1.1% to $3,141.35 per ounce, while gold futures for June delivery slipped 1.4% to $3,143.67 per ounce.
Trade Optimism Weighs on Safe Havens
The precious metal has come under sustained pressure this week after the United States and China announced significant tariff rollbacks. The temporary easing of trade tensions fueled demand for risk-driven assets and pulled capital away from traditional safe havens like gold.
Although markets cooled slightly on Thursday, the shift in sentiment has kept gold prices well off the record highs seen earlier this month. That said, the metal remains comfortably above the $3,000 mark, a key psychological level breached in April amid heightened geopolitical and economic uncertainty.
Dollar Strength, Treasury Yields Add to Pressure
Gold was also weighed down by a resilient U.S. dollar, which attracted demand ahead of several major economic indicators and a closely watched speech by Federal Reserve Chair Jerome Powell later in the day. A spike in U.S. Treasury yields further added to gold’s decline, increasing the opportunity cost of holding non-yielding assets.
Focus Turns to U.S. Data, Powell’s Remarks
Investors are now bracing for a slew of U.S. economic releases, including:
- Producer Price Index (PPI) data for April, following Tuesday’s softer-than-expected CPI figures.
- Retail sales figures, which will provide a window into consumer resilience amid trade uncertainty.
Additionally, Fed Chair Powell’s speech later on Thursday could influence expectations around future interest rate moves. The central bank held rates steady last week and signaled that near-term rate cuts were not on the table, citing persistent inflation concerns.
Powell is expected to elaborate on the Fed’s monetary policy framework, which shapes decisions on employment targets, price stability, and interest rates.
Broader Metals Decline
The downtrend extended across the precious and industrial metals markets:
- Platinum futures fell 0.5% to $977.10/oz
- Silver futures dropped 1.6% to $31.915/oz
- London copper futures slid 0.7% to $9,524.95/ton
- U.S. copper futures slipped 0.8% to $4.6085/lb
Looking ahead, global markets will also be eyeing Japanese GDP data set for release on Friday, offering more insight into the broader economic fallout from recent trade dynamics.
