Gold prices slid to a one-month low in Asian trading on Thursday, continuing their recent decline as easing US-China trade tensions lifted risk appetite and weakened demand for safe-haven assets.
Spot gold dropped 1.1% to $3,141.35 an ounce, while June gold futures fell 1.4% to $3,143.67 per ounce by 01:09 ET (05:09 GMT). The metal faced additional pressure from a firm US dollar and rising Treasury yields ahead of key economic data and a speech by Federal Reserve Chair Jerome Powell.
US-China Trade Deescalation Undermines Safe-Haven Demand
Investors have been unwinding gold positions after the US and China announced substantial tariff reductions earlier this week. The move eased concerns over trade tensions, triggering a rally in equities and risk-driven assets while reducing the appeal of gold.
Despite a cooling in market exuberance on Thursday, gold prices remained under pressure, having retreated sharply from record highs set last week. However, the metal held above the $3,000 per ounce mark, a level reclaimed in April amid heightened trade war fears.
“While some tariffs remain, the deescalation has shifted focus away from safe havens,” analysts noted, adding that further tariff rollbacks or positive trade developments could continue to weigh on bullion.
Broader Metals Market Follows Gold Lower
Other precious and industrial metals also declined in Thursday’s session. Silver futures slid 1.6% to $31.915 per ounce, while platinum futures lost 0.5% to $977.10 per ounce.
Benchmark copper futures on the London Metal Exchange dropped 0.7% to $9,524.95 per ton, with US copper futures falling 0.8% to $4.6085 per pound, amid broader risk sentiment and macroeconomic concerns.
US Economic Data, Powell Speech Awaited
Investors are now closely watching upcoming US economic indicators, including April’s producer price index (PPI) and retail sales data, for further insight into the health of the world’s largest economy.
A recent softer-than-expected consumer price index (CPI) reading has fueled speculation about potential Federal Reserve rate cuts later this year. A continued easing in inflation could strengthen these expectations.
Attention is also on Federal Reserve Chair Jerome Powell, who is set to deliver remarks later Thursday. Powell is expected to elaborate on the Fed’s monetary policy framework following last week’s decision to hold interest rates steady and maintain a cautious stance on further rate cuts.
Beyond the US, markets are also awaiting Japan’s gross domestic product (GDP) data, scheduled for release on Friday, for additional global economic cues.
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