Gold prices fell on Tuesday, as easing trade tensions between the US and its trading partners weakened the metal's appeal as a safe haven, while investors awaited US economic data to assess the Federal Reserve's policy course, UNN writes with reference to Reuters.
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Spot gold fell 0.8% to $3314.65 an ounce as of 06:19 GMT (09:19 Kyiv time). US gold futures lost 0.7% to $3324.20.
"The risk environment has clearly improved recently, amid market participants being encouraged by optimism that the worst of the trade disputes may be behind us, amid encouraging rhetoric surrounding trade deals," said IG Market strategist Yep Jun Rong.
US Treasury Secretary Scott Bessent said on Monday that several leading trading partners have made "very good" offers to avoid US tariffs, and India is likely to be among the first to strike a deal.
China's recent moves to exempt some US goods from retaliatory tariffs have demonstrated a willingness to de-escalate trade tensions, Bessent added.
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US President Donald Trump's administration will also take steps to reduce the impact of his auto tariffs by easing some of the tariffs imposed on foreign parts in domestically produced cars.
But, according to most economists polled by Reuters, the risks of the global economy sliding into recession this year are high, and many say Trump's tariffs have hurt business sentiment.
Bullion, traditionally seen as a hedge against political and financial instability, rose to an all-time high of $3,500.05 an ounce last week due to increased uncertainty.
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Investors will be watching economic data from the US this week.
"Long-term structural tailwinds for gold prices are likely to maintain a broader uptrend, supported by opportunities for continued reserve diversification among emerging market central banks," Rong said.
Spot silver fell 0.6% to $32.98 an ounce, platinum fell 0.2% to $984.65, and palladium lost 0.5% to $944.34.
Gold falls in price amid easing trade tensions, strengthening dollar28.04.2025, 15:29 • [views_2917]