Gold falls on easing trade war concerns; US data awaited
Tue April 29 2025
Gold prices fell on Tuesday as easing trade tensions between the U.S. and its trading partners dented the metal's safe-haven appeal, while investors awaited U.S. economic data to assess the Federal Reserve's policy path.
FUNDAMENTALS
* Spot gold fell 0.3% to $3,332.99 an ounce as of 0034 GMT. U.S. gold futures lost 0.1% to $3,343.20.
* U.S.
Treasury Secretary Scott Bessent said on
Monday that several top trading partners had made "very good"
proposals to avoid U.S. tariffs, with India likely to be among the first to
finalize a deal.
* China's recent moves to exempt certain U.S. goods from its retaliatory tariffs showed a willingness to de-escalate tensions between the world's two largest economies, Bessent added.
* Meanwhile, risks are high that the global
economy will slip into recession this year, according to a majority of
economists in a Reuters poll, with many saying U.S. President Donald Trump's
tariffs have damaged business sentiment.
* 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.
* Investors will keep a tab on a series of
economic data this week, with the U.S. job openings report due later in the
day, Personal Consumption Expenditures on Wednesday and the non-farm payrolls
report on Friday. The data will help gauge the impact of the latest Trump
tariffs on the Fed's policy outlook.
* Among other metals, spot silver fell 0.2% to
$33.10 an ounce, platinum was steady at $986.13 and palladium lost 0.3% to
$946.51.