Gold fell nearly 2% to a two-week low on Thursday, as signs of easing trade tensions boosted risk appetite and reduced the appeal of bullion as a safe haven, while a stronger US dollar also put pressure on prices, UNN reports citing Reuters.
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Spot gold fell nearly 2% to $3222.66 an ounce by 11:29 GMT (14:29 Kyiv time) after hitting its lowest level since April 15.
US gold futures fell 2.7% to $3230.80.
The dollar index rose 0.3%, making dollar-denominated gold more expensive for buyers holding other currencies.
"There is constant hope that some trade agreements will be signed soon, which will allow for lower tariffs," said UBS analyst Giovanni Staunovo, adding that this optimism combined with a stronger dollar is putting pressure on gold.
US President Donald Trump said on Wednesday that trade deals with India, Japan and South Korea are possible. He also said there is a very good chance of a deal with China.
The US has asked China to negotiate Trump's 145% tariffs, according to a social media account linked to Chinese state media.
The US economy contracted in the first quarter for the first time in three years, weakened by rising imports, as businesses struggled to stay ahead of higher tariffs.
US Federal Reserve policymakers have indicated that short-term interest rates will remain unchanged until there are clear signs of inflation approaching the central bank's 2% target or a potential deterioration in the labor market.
Investors are awaiting Friday's nonfarm payrolls report for more details on the direction of Fed policy.
"A weaker employment report should support calls for further Fed rate cuts this year and allow gold to return to $3,500 an ounce in the coming months," said Staunovo of UBS.
Analysts in a quarterly Reuters poll predict that the average annual gold price will exceed $3,000 for the first time.
Gold, a non-yielding metal considered a hedge against political and financial turmoil, briefly reached $3,500 last week.
Gold prices rose above $3,500 for the first time22.04.25, 18:11 • [views_6998]
Spot silver fell 1.8% to $31.99 an ounce, platinum fell about 1% to $956.63, and palladium rose 0.3% to $941.10.