Gold Prices Down Amid Modest USD Gains
Gold (XAU/USD) prices traded with a negative bias for the second straight day, albeit lacked bearish conviction and held above the $3,300 mark during the Asian session on Wednesday (4/30). Global equity markets continued to rally amid signs of easing US-China trade tensions and US President Donald Trump’s decision to grant tariff flexibility to US automakers. This, along with a modest US Dollar (USD) gain, were seen as key factors undermining demand for the precious metal as a safe haven.
Meanwhile, Trump’s rapid change in stance on trade policy has been poorly received by investors and has led to a major shift away from US assets recently. Moreover, prospects of more aggressive policy easing by the Federal Reserve (Fed), amid growing concerns over the economic impact of tariffs, might continue to act as a headwind for the USD. This, in turn, extended support to non-yielding Gold prices and helped limit the downside, thus warranting caution for bearish traders.
Source: FXStreet