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Gold prices extended their recent declines in Asian trading on Monday, moving further away from last week’s record highs, as signs of easing trade tensions between the U.S. and China reduced demand for safe-haven assets.
- Spot Gold fell 0.8% to $3,292.75 per ounce as of 01:54 ET (05:54 GMT).
- Gold Futures expiring in June edged up 0.2% to $3,303.77 an ounce.
Conflicting Signals on U.S.-China Trade Talks
Sentiment in the gold market remained fragile amid mixed signals over the status of U.S.-China trade discussions:
- Media reports last week indicated that China exempted certain U.S. goods from its retaliatory 125% tariffs, a move seen as a goodwill gesture.
- President Donald Trump claimed that tariff talks were underway, even stating that he had spoken directly with Chinese President Xi Jinping.
- However, Treasury Secretary Scott Bessent contradicted Trump on Sunday, saying he was unaware of any active negotiations and unsure about recent contact between the leaders.
- China has also denied that any trade talks are currently taking place.
This conflicting information kept investor caution elevated, but the initial signs of possible deescalation were enough to sap immediate demand for gold.
Focus Shifts to Key U.S. Economic Data
Markets are also positioning ahead of a busy U.S. economic calendar this week, which could influence the Federal Reserve’s interest rate outlook:
- Friday: April non-farm payrolls (jobs report).
- Later this week:
- Q1 GDP data (first estimate).
- PCE price index, the Fed’s preferred inflation measure.
These releases could sway expectations about whether the Fed maintains its “wait-and-see” policy stance amid trade and economic uncertainties.
The U.S. Dollar Index was largely unchanged early Monday, offering little immediate support or pressure for gold.
Performance of Other Precious Metals
- Silver Futures fell 0.6% to $32.807 an ounce.
- Platinum Futures rose 0.5% to $977.55 an ounce.
Summary
Gold remains near historically high levels but faces pressure as markets weigh tentative signs of progress in the U.S.-China trade standoff against conflicting political signals and the looming impact of key U.S. economic reports.
Conclusion:
Gold could experience continued volatility this week, depending on:
- Further developments in U.S.-China trade rhetoric, and
- U.S. economic data, particularly if it shifts expectations about future Fed policy moves.
