Gold prices slid to their lowest level in a month during Asian trading on Thursday, continuing a downward trend fueled by easing tensions in the U.S.-China trade dispute. The deescalation boosted risk appetite, reducing demand for traditional safe haven assets like gold.
The precious metal also came under pressure from a stronger U.S. dollar, which gained ahead of key U.S. economic data and a speech from Federal Reserve Chair Jerome Powell expected later in the day. Rising Treasury yields further dampened gold’s appeal.
Spot gold dropped 1.1% to $3,141.35 per ounce, while June gold futures were down 1.4% at $3,143.67/oz as of 01:09 ET (05:09 GMT).
Gold Faces Pressure After US-China Trade Thaw
The reduction of trade tariffs between the U.S. and China this week sparked a surge in risk-on sentiment, weakening safe haven demand and dragging gold prices lower. Even though this rally cooled somewhat on Thursday, gold continued to feel the pressure—especially after reaching record highs the previous week.
Despite the pullback, gold held firm above the $3,000/oz mark, a key psychological level it surpassed in April amid growing fears about the economic fallout of a prolonged trade conflict between Washington and Beijing.
Although both sides moved to ease trade tensions, many tariffs remain in place. Markets are now anticipating further reductions and monitoring U.S. trade negotiations with other countries for additional bullish cues.
Broader Metals Decline
Other precious metals followed gold’s lead on Thursday. Platinum futures dipped 0.5% to $977.10/oz, while silver futures declined 1.6% to $31.915/oz.
Industrial metals were also under pressure. Copper futures on the London Metal Exchange fell 0.7% to $9,524.95 per ton, while U.S. copper futures slipped 0.8% to $4.6085 per pound.
All Eyes on U.S. Data and Powell
Investors are now turning their attention to a slate of upcoming U.S. economic reports and a speech from Fed Chair Powell for more insight into the outlook for the world’s largest economy.
April’s Producer Price Index (PPI) is due, following a softer-than-expected Consumer Price Index (CPI) reading earlier this week. A continued decline in inflation could raise hopes for Federal Reserve rate cuts later this year.
Retail sales figures, also set for release Thursday, will offer additional clues about consumer spending amid the lingering effects of the U.S.-China trade conflict.
Fed Chair Jerome Powell is expected to address the Fed’s policy framework, which guides decisions on employment, inflation, and interest rates. His remarks come after the central bank left interest rates unchanged last week and signaled no immediate plans to lower them.
Elsewhere, Japan’s GDP figures are set for release on Friday, adding to the global economic picture.
