Gold Prices Slip as Risk Appetite Improves, Dollar Recovers

Gold prices edged lower in Asian trading on Wednesday, weighed down by a revival in risk appetite after U.S. President Donald Trump delayed plans to impose steep tariffs on the European Union. The move, which helped lift equity markets and investor sentiment, reduced demand for safe-haven assets like gold.

Spot gold steadied at $3,301.96 an ounce, while gold futures for August delivery inched 0.1% higher to $3,331.91 per ounce by 01:17 ET (05:17 GMT).

Trump’s announcement over the weekend that he would postpone the 50% tariffs on the EU to early July was seen as a positive development for markets. Investors interpreted the move as a sign that the U.S. president may ease back from his broader tariff threats, with reciprocal tariffs against other major economies also set to take effect in July. This optimism sparked a rally in risk assets, with Wall Street indices posting strong gains on Tuesday.

Adding to the improved sentiment, U.S. consumer confidence data released on Tuesday exceeded expectations, suggesting resilience in the American economy despite ongoing trade uncertainties.

Looking ahead, market focus shifts to key U.S. economic signals, including a series of Federal Reserve speakers and the release of the Fed’s latest meeting minutes later on Wednesday. Investors will also closely monitor earnings from Nvidia (NASDAQ:NVDA), with expectations high for insights into the AI sector and chip demand.

The dollar staged a mild recovery alongside some stability in Treasury yields, adding further pressure on metal prices. Yields had surged in recent weeks amid concerns over the U.S.’s fiscal outlook, but steadied on Tuesday as Trump’s tariff postponement helped ease market anxieties. Meanwhile, attention remains on the progress of the tax cut bill backed by the Trump administration, a key factor in shaping long-term fiscal dynamics.

Among other precious metals, platinum futures dipped 0.1% to $1,079.85 per ounce, while silver futures rose 0.3% to $33.413 per ounce.

Industrial metals were mostly lower, with London copper futures slipping 0.2% to $9,584.90 per ton and U.S. copper futures down 0.7% to $4.7103 per pound. The pullback comes after a strong run in recent sessions, as traders take stock of global economic conditions and the evolving trade landscape.