Investors are waiting for US economic data to assess the Fed’s policy path
29 April 2025 - 07:21
byAnushree Mukherjee
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Bengaluru — Gold prices dropped nearly 1% on Tuesday as softening trade tension between the US and its trading partners dulled the metal’s safe-haven appeal, while investors awaited US economic data to assess the Federal Reserve’s policy path.
Spot gold was down 0.8% at $3,314.99/oz by 4.25am GMT. US gold futures lost 0.7% to $3,325.10.
“The risk environment has clearly improved recently, with market participants buoyed by optimism that the worst of the trade tensions may be behind us amid encouraging rhetoric around trade deals,” said IG market strategist Yeap Jun Rong.
US treasury secretary Scott Bessent said on Monday several top trading partners had made “very good” proposals to avoid US tariffs, with India likely to be among the first to finalise a deal.
China’s recent moves to exempt certain US goods from its retaliatory tariffs showed a willingness to de-escalate trade tensions, Bessent added.
US President Donald Trump’s administration will also move to reduce the effect of his automotive tariffs by alleviating some duties imposed on foreign parts in domestically manufactured cars.
But risks are high that the global economy will slip into recession this year, according to a majority of economists in a Reuters poll, with many saying Trump’s tariffs have damaged business sentiment.
Bullion, traditionally seen as a hedge against political and financial instability, rose to a record high of $3,500.05/oz last week due to elevated uncertainty.
Investors will monitor economic data this week, including the US job openings report later in the day, personal consumption expenditures (PCE) on Wednesday, and the nonfarm payrolls report on Friday.
“Longer-term structural tailwinds for gold prices are likely to keep the broader upward trend intact, supported by room for ongoing reserve diversification among emerging market central banks,” Rong said.
Spot silver was down 0.5% at $32.98/oz, platinum fell 0.2% to $984.56 and palladium lost 0.4% to $945.47.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold slips as tariff worries ease
Investors are waiting for US economic data to assess the Fed’s policy path
Bengaluru — Gold prices dropped nearly 1% on Tuesday as softening trade tension between the US and its trading partners dulled the metal’s safe-haven appeal, while investors awaited US economic data to assess the Federal Reserve’s policy path.
Spot gold was down 0.8% at $3,314.99/oz by 4.25am GMT. US gold futures lost 0.7% to $3,325.10.
“The risk environment has clearly improved recently, with market participants buoyed by optimism that the worst of the trade tensions may be behind us amid encouraging rhetoric around trade deals,” said IG market strategist Yeap Jun Rong.
US treasury secretary Scott Bessent said on Monday several top trading partners had made “very good” proposals to avoid US tariffs, with India likely to be among the first to finalise a deal.
China’s recent moves to exempt certain US goods from its retaliatory tariffs showed a willingness to de-escalate trade tensions, Bessent added.
US President Donald Trump’s administration will also move to reduce the effect of his automotive tariffs by alleviating some duties imposed on foreign parts in domestically manufactured cars.
But risks are high that the global economy will slip into recession this year, according to a majority of economists in a Reuters poll, with many saying Trump’s tariffs have damaged business sentiment.
Bullion, traditionally seen as a hedge against political and financial instability, rose to a record high of $3,500.05/oz last week due to elevated uncertainty.
Investors will monitor economic data this week, including the US job openings report later in the day, personal consumption expenditures (PCE) on Wednesday, and the nonfarm payrolls report on Friday.
“Longer-term structural tailwinds for gold prices are likely to keep the broader upward trend intact, supported by room for ongoing reserve diversification among emerging market central banks,” Rong said.
Spot silver was down 0.5% at $32.98/oz, platinum fell 0.2% to $984.56 and palladium lost 0.4% to $945.47.
Reuters
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