Gold remains sensitive to U.S. policy, especially during shifts in global trade and economic sentiment. On Tuesday, gold prices declined after positive signs emerged in U.S.-China trade discussions. Meanwhile, investors focused on key U.S. economic data set to release later this week.
At 0935 GMT, spot gold dropped 0.8% to $3,313.23 per ounce. U.S. gold futures also dipped 0.7%, hitting $3,323.80. The metal’s price movement once again proves that gold remains sensitive to U.S. policy, particularly when global risk sentiment changes.
Ricardo Evangelista, a senior analyst at ActivTrades, noted that optimism in financial markets reduced gold’s appeal. A strengthening U.S. dollar and signs of a potential trade resolution are drawing investors toward riskier assets.
Treasury Secretary Scott Bessent said several nations proposed solid measures to avoid additional tariffs. In response, China exempted select U.S. goods from its tariffs, signaling readiness to calm tensions.
In another move, U.S. officials are planning to ease auto tariffs. They intend to cut duties on foreign parts used in U.S.-assembled vehicles. This could reduce pressure on domestic manufacturers and prevent new trade barriers.
Technical charts suggest gold may test resistance near $3,373. If momentum slows, it could revisit support at $3,293. Regardless of these short-term shifts, gold remains sensitive to U.S. policy, especially with inflation and labor reports due soon.
Yeap Jun Rong, a market strategist at IG, said long-term demand for gold stays strong. He highlighted central banks in emerging markets increasing gold reserves as part of diversification efforts.
China’s gold imports via Hong Kong also surged 41.9% in March. This shows ongoing interest in the metal despite current price weakness.
In conclusion, Silver gained 0.4% to $33.30, platinum rose 0.2% to $988.60, while palladium fell 0.5% to $944.22. Clearly, gold remains sensitive to U.S. policy, and the market will respond swiftly to upcoming data.
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