Gold Holds Drop as Haven Demand Ebbs on Easing Trade Tension
Gold edged lower for a second day as President Donald Trump eased the impact of some auto tariffs and pointed to progress in trade negotiations with several countries.
Bullion traded near $3,305 an ounce, following a 0.8% decline in the previous session as risk-on sentiment returned to broader markets. Trump signed two executive orders preventing duties on foreign-made vehicles from stacking on top of other levies and reducing charges on parts from overseas used to make cars in the US.
Investors looked past weak US data, including consumer confidence, which fell to the lowest in almost five years in April on growing pessimism over prospects for the economy and labor market. US job openings also dropped last month to the least since September.
There’s still a lot of uncertainty over the impact of US-led trade wars, which has stoked demand for gold and pushed it briefly to a record high above $3,500 an ounce last week. The run has been supported by strong inflows into gold-backed exchange-traded funds, while robust central-bank purchases and signs of speculative demand in China have added further fuel to the rally of more than a quarter so far this year.
Chinese, Indian and French officials were approaching the US seeking trade deals, Trump said at an event outside of Detroit, although Beijing has denied it’s in talks with Washington. The president also renewed criticism of Federal Reserve Chairman Jerome Powell and said higher inflation figures were “fake news” at the rally, which marked his 100th day in office.
Spot gold dipped 0.4% to $3,305.71 an ounce as of 9:05 a.m. in London. The Bloomberg Dollar Spot Index was steady. Silver, platinum and palladium all edged lower.
Source : Bloomberg
