Gold Prices Fall Slightly as Dollar Strengthens, Trade Tensions Ease

Gold prices slipped slightly on Wednesday as a stronger U.S. dollar and signs of easing trade tensions between the United States and its global partners weighed on demand for the precious metal. Investors are now turning their attention to key economic indicators that could influence the Federal Reserve’s next moves on interest rates.

As of 02:42 GMT, spot gold dipped by 0.2% to $3,308.32 per ounce, while U.S. gold futures fell 0.5% to $3,317.50. The U.S. dollar inched 0.1% higher against a basket of major currencies, making gold less attractive for buyers using other currencies.

“There’s been a minor recovery in the broad dollar strength, which led to a little bit of retracement in gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.

The market responded to positive developments in trade policy after U.S. President Donald Trump signed two executive orders aimed at easing the impact of his auto tariffs, offering credits and some relief from other duties. His administration also announced a preliminary trade deal with a foreign partner, reducing concerns over potential trade disruptions.

In another boost to market sentiment, China reportedly lifted its recently imposed 125% tariff on ethane imports from the U.S., according to two sources familiar with the matter.

Gold, often seen as a safe-haven during times of uncertainty, had previously surged to a record high of $3,500.05 per ounce on April 22 amid rising global economic concerns.

Market watchers are now awaiting fresh U.S. economic data, including personal consumption expenditures (PCE) later today and Friday’s non-farm payrolls report, to assess how recent tariffs might influence the Fed’s rate outlook.

“The PCE data is expected to show further moderation in prices and keep the door open for further Fed cuts,” said Kyle Rodda, financial markets analyst at Capital.com. “If we get an upside surprise, then those odds may diminish and that could weigh on gold prices.”

Currently, traders are pricing in about 97 basis points worth of rate cuts by the end of 2025.

In other precious metals, spot silver dipped 0.1% to $32.93 an ounce, platinum dropped 0.6% to $971.90, and palladium slipped 0.3% to $931.84.

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