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Gold prices extended their decline on Wednesday as improved sentiment around U.S. trade policy and tariff relief reduced demand for safe-haven assets. Still, the precious metal remains on track for a nearly 6% monthly gain in April, marking its fourth consecutive monthly rise.
- Spot Gold: ↓ 0.4% to $3,305.10/oz
- Gold Futures (June): ↓ 0.6% to $3,314.94/oz
(as of 06:30 GMT)
Auto Tariff Relief and Trade Optimism Weigh on Gold
U.S. President Donald Trump signed two executive orders on Tuesday designed to ease the impact of automotive tariffs. These include:
- Tax credits and
- Tariff relief on imported components used in U.S.-based car manufacturing.
Meanwhile, Commerce Secretary Howard Lutnick hinted the U.S. was “close” to a major trade deal—further boosting risk sentiment and pulling investor capital away from gold.
These moves signaled a temporary de-escalation in U.S.-China trade tensions, a key driver of gold’s recent rally to all-time highs.
Other Precious Metals
- Silver Futures: ↓ 1.3% to $32.855/oz
- Platinum Futures: Unchanged at $979.05/oz
Investors Await Critical U.S. Economic Data
Despite Tuesday’s weak consumer confidence and soft job openings data (JOLTS), traders are in a holding pattern ahead of several market-moving reports:
- PCE Price Index (Fed’s preferred inflation gauge)
- Q1 GDP Data
- April Nonfarm Payrolls Report (due Friday)
These releases will help shape expectations around the Federal Reserve’s interest rate trajectory, with officials currently in a wait-and-see mode amid global economic uncertainty.
Copper Slips on Weak China PMI
Copper prices were also under pressure after China’s April manufacturing PMI unexpectedly fell to 49.0, signaling contraction and marking the weakest reading since Dec. 2023.
- LME Copper: ↓ 0.5% to $9,379.55/ton
- U.S. Copper Futures (May): ↓ 1.5% to $4.7875/pound
The downturn was blamed on the continued impact of U.S. tariffs on Chinese goods, currently standing at 145%, which have dampened industrial output and demand forecasts.
