The gold price is witnessing a slight decline for the second consecutive day, yet it remains above the $3,300 levels, supported by the rise in global stocks amid signs of easing trade tensions between the U.S. and China and flexibility in auto tariffs. Meanwhile, concerns about the volatility of U.S. trade policies and speculations regarding upcoming Federal monetary easing continue to provide support for gold and limit its losses amid a slight rebound in the dollar.
Gold performance today:
The gold and precious metals market is experiencing a notable decline during today’s spot and futures trading. The spot gold price fell by 0.2% to reach $3,308.32 per ounce, while U.S. gold futures dropped by a larger margin of 0.5% to settle at $3,317.50 per ounce.
As for other precious metals, they followed the same downward trend. Silver saw a slight decline of 0.1% in spot trading, reaching $32.93 per ounce. The decline was more significant in platinum and palladium, with platinum dropping 0.6% to $971.90 per ounce, and palladium decreasing by 0.3% to record $931.84 per ounce.
Main reasons behind gold price movements:
Reduced severity of U.S.-China trade tensions: This is due to President Trump's decision to grant flexibility to automakers regarding tariffs, along with signs of progress in trade negotiations between the U.S. and China, which boosted market optimism and decreased gold's allure as a safe haven.
Slight increase in the value of the U.S. dollar: The U.S. dollar is attracting some buyers for the second consecutive day, putting downward pressure on gold priced in dollars.
Expectations of monetary easing by the Federal Reserve: Disappointing U.S. economic data released yesterday, including a decline in job openings and a slowdown in consumer confidence, have reinforced expectations that the Federal Reserve may soon return to cutting interest rates. These expectations limit any significant rise in the U.S. dollar and support the gold price.
Upcoming U.S. economic data: Traders are closely watching U.S. economic data set to be released today, including the preliminary estimate of GDP for the first quarter and the personal consumption expenditures price index. Additionally, the non-farm payroll report on Friday will provide signals regarding the Federal Reserve's policy direction, influencing gold prices in the near term.
Analysts expect that the personal consumption expenditures data is likely to show more moderation in prices, indicating further cuts by the Federal Reserve.
