Gold Holds Decline as Safe-haven Demand Eases
Gold steadied after falling on Tuesday as President Donald Trump eased the impact of some auto tariffs and signaled progress in trade talks with some countries.
Bullion traded near $3,316 an ounce, following a 0.8% decline in the previous session as risk sentiment returned to the broader market. Trump signed two executive orders that prevent tariffs on foreign-made vehicles from piling on top of other levies and reduce costs on foreign-made parts used to make cars in the U.S.
Investors shrugged off weak U.S. data including consumer confidence, which fell to its lowest level in nearly five years in April as pessimism grew over the outlook for the economy and labor market. U.S. job openings also fell last month to their lowest since September.
Much uncertainty remains over the impact of the U.S.-led trade war, which has fueled demand for gold and pushed it briefly to a record high above $3,500 an ounce last week. The rally was supported by strong inflows into gold-backed exchange-traded funds, while strong central bank buying and signs of speculative demand in China have added further fuel to the rally more than a quarter of a year ago.
Officials from China, India and France are approaching the U.S. to seek a trade deal, Trump said at an event outside Detroit, though Beijing has denied it is negotiating with Washington. The president also renewed criticism of Federal Reserve Chairman Jerome Powell and said higher inflation figures were “fake news” on the rally, which is marking his 100th day in office.
Spot gold fell 0.1% to $3,315.87 an ounce as of 7:50 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver, platinum and palladium were all relatively stable.
Source: Bloomberg
