Gold prices fell in Asian trading on Wednesday, continuing their slide from recent record highs. The decline came after U.S. President Donald Trump hinted at potentially lower trade tariffs on China and softened his stance on the Federal Reserve.
The precious metal experienced substantial losses overnight on Tuesday as investors shifted away from safe-haven assets like gold and embraced riskier assets, particularly equities. A modest rebound in the U.S. dollar also weighed on gold prices.
Spot gold dropped by 1% to $3,347.54 per ounce, while gold futures for June delivery fell 1.8%, reaching $3,356.99/oz at 01:22 ET (05:22 GMT). Despite the downturn, gold prices remain near the peak of $3,500.33/oz, which was reached on Tuesday.
While other metal prices saw limited support from an improved risk sentiment, gold’s larger losses were curbed by ongoing uncertainty surrounding Trump’s policies.
Trump Comments Fuel Risk Appetite, Pressure Gold
Trump’s remarks on Tuesday sparked optimism among investors, as he suggested a potential reduction in steep trade tariffs on China, contingent upon successful negotiations. His comments came after Treasury Secretary Scott Bessent signaled that the ongoing U.S.-China trade war was “unsustainable” and expected a de-escalation soon.
Trump had previously imposed tariffs of 145% on Chinese goods, leading Beijing to retaliate with its own 125% tariffs. Although Trump’s comments raised hopes of an eventual trade deal, China has so far shown little intention of backing down from the ongoing trade dispute. Additionally, Trump walked back his recent criticism of the Federal Reserve, stating that he did not intend to fire Fed Chair Jerome Powell, despite previously calling for lower interest rates on social media.
Trump’s statements on Tuesday reduced gold’s appeal as a safe-haven asset, dampening the demand that had driven its rally earlier in 2025.
Other Metals Mixed; Copper Sees Gains
The performance of other precious metals was mixed. Platinum futures gained 0.7%, reaching $961.70/oz, while silver futures declined by 0.6%, settling at $32.720/oz.
Among industrial metals, copper prices rose on the back of expectations for improved economic conditions in China, the world’s top copper importer. However, concerns over the prolonged U.S.-China trade war continue to cast a shadow on the metal’s prospects. Benchmark copper futures on the London Metal Exchange climbed 0.4%, reaching $9,424.20 per ton, while U.S. copper futures gained 1.1%, trading at $4.9020 per pound.
JP Morgan Predicts Gold Could Reach $4,000/oz by 2026
In a positive outlook for gold, JPMorgan expects the metal to surpass $4,000 per ounce by mid-2026, driven by heightened recession fears, persistent U.S. tariffs, the ongoing trade war, and strong central bank demand.
This forecast comes as spot gold recently touched $3,500/oz for the first time. The metal’s safe-haven status has been bolstered by declines in the dollar and U.S. Treasury yields, with markets increasingly viewing gold as a hedge against economic instability.
However, JPMorgan also warned of potential risks to this bullish outlook. A sudden drop in central bank demand or stronger-than-expected resilience in the U.S. economy could undermine gold’s appeal as a safe-haven asset.
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