Gold Slips in Asia as Risk Sentiment Rises on Trump’s Tariff Delay
Gold prices declined during Asian trading hours on Wednesday, weighed down by improved investor confidence after U.S. President Donald Trump delayed the implementation of steep tariffs on the European Union.
The yellow metal, along with other metals, also faced headwinds from a modest rebound in the U.S. dollar, supported by signs of stability in the Treasury market.
Despite the downward pressure, gold retained some support amid ongoing uncertainty surrounding U.S. trade policy and fiscal outlook. Investors remained focused on upcoming trade negotiations and the advancement of a contentious tax cut plan backed by Trump.
Spot gold held steady at $3,301.96 per ounce, while August gold futures edged up 0.1% to $3,331.91/oz as of 01:17 ET (05:17 GMT).
Tariff Relief Lifts Risk Appetite, Weakens Demand for Safe Havens
Over the weekend, Trump announced a delay in imposing 50% tariffs on EU imports until early July. That same month, other retaliatory tariffs against major global economies are set to come into effect, although the EU delay raised hopes that further aggressive tariff moves might also be reconsidered.
This development boosted appetite for riskier assets, leading to strong gains on Wall Street Tuesday. Adding to the positive mood, upbeat U.S. consumer confidence data helped ease economic concerns.
Market participants now turn their attention to fresh economic signals expected in the coming days, including comments from multiple Federal Reserve officials and the release of minutes from the central bank’s latest meeting, scheduled for later Wednesday.
Investors are also closely watching earnings from NVIDIA Corporation (NASDAQ: NVDA), a key player in the artificial intelligence sector. The company’s recent quarterly reports have triggered significant market volatility, with traders looking to NVIDIA for clues on broader AI and chip market trends.
Dollar Rebound and Yield Stability Weigh on Metals
Base and precious metals traded mostly lower on Wednesday as a stronger dollar and more stable Treasury yields added pressure. The dollar’s rebound followed Trump’s tariff postponement, which boosted confidence in the U.S. economy and financial markets.
Treasury yields, which had surged in recent weeks due to fiscal worries, showed signs of settling, with markets tracking the progress of a tax reduction proposal moving through Congress.
Among precious metals, platinum futures dipped 0.1% to $1,079.85/oz, while silver futures rose 0.3% to $33.413/oz.
In industrial metals, benchmark copper futures on the London Metal Exchange dropped 0.2% to $9,584.90 per ton, and U.S. copper futures declined 0.7% to $4.7103 per pound.
