Gold Drops as Trade War Fears Subside and Key U.S. Data Takes Center Stage

By Anushree Mukherjee

(Romero.my.id) - On Tuesday, gold prices declined as easing trade frictions between the U.S. and its trading counterparts reduced the asset’s attractiveness as a safe haven. Meanwhile, investors were looking forward to U.S. economic indicators to gauge the direction of the Federal Reserve's policies.

As of 02:11 GMT, spot gold decreased by 0.4% to reach $3,329.12 per ounce. Meanwhile, U.S. gold futures dropped by 0.2%, trading at $3,342.40.

"The risk landscape has notably enhanced lately, as market players have been uplifted by the hope that we might have seen the peak of trade conflicts, thanks to positive statements regarding trade agreements," noted IG Market Strategist Yeap Jun Rong.

U.S. Treasury Secretary Scott Bessent stated on Monday that multiple key trade allies have presented “very good” suggestions aimed at sidestepping U.S. tariffs, with India expected to be one of the initial countries to conclude an agreement.

China's decision to grant exemptions for specific American products from its counter-tariffs indicated an openness to ease trade disputes, as Bessent noted additionally.

The administration of U.S. President Donald Trump plans to lessen the effect of his auto tariffs on Tuesday by easing certain duties applied to imported components used in vehicles manufactured within the country.

However, there is a significant risk that the worldwide economy might fall into a recession this year, as indicated by most economists in a Romero.my.id poll. Many of these experts believe that President Trump’s tariffs have negatively impacted business confidence.

Bullion, traditionally seen as a hedge against political and financial instability, rose to an all-time high of $3,500.05/oz last week due to elevated uncertainties.

This week, investors will keep an eye on various economic indicators, such as the U.S. job openings report later today, Personal Consumption Expenditures data due out on Wednesday, and the non-farm payrolls report set for release on Friday.

Rong stated that longer-term structural factors are expected to maintain the overall upward trajectory of gold prices, bolstered by the potential for continued reserve diversification among emerging-market central banks.

The price of spot silver decreased by 0.1% to reach $33.21 per ounce, platinum remained stable at $986.00, whereas palladium dropped by 0.1% to stand at $948.06.

(Reported by Anushree Mukherjee in Bengaluru; Edited by Sumana Nandy and Rashmi Aich)