Gold Prices Decline Amid Dollar Strength and Easing Trade Tensions

Gold prices experienced a downturn on Wednesday as a stronger dollar and reduced trade tensions weighed on the market. Investors are keenly awaiting crucial U.S. economic data for insights into the Federal Reserve’s upcoming rate decisions.

Spot gold decreased by 0.4%, settling at $3,302.58 per ounce as of 0430 GMT. Meanwhile, U.S. gold futures saw a 0.7% drop, reaching $3,310.70.

The dollar saw a slight increase of 0.1% against a basket of currencies, which made gold more costly for international purchasers.

Expert Analysis

Nicholas Frappell of ABC Refinery noted that the minor resurgence in dollar strength contributed to a slight pullback in gold prices.

U.S. President Donald Trump recently approved measures intended to alleviate the impact of auto tariffs, while his trade representatives declared an initial agreement with a foreign trade partner.

Kyle Rodda, a financial market analyst at Capital.com, commented that despite the dilution of tariffs by the Trump administration, their continued presence and the resulting uncertainty have potentially damaged confidence in U.S. assets.

As a safe haven during times of political and economic instability, gold had previously peaked at a record $3,500.05 per ounce on April 22, driven by global economic concerns.

In Pakistan, the gold price per tola increased by Rs2,100.

Upcoming Economic Data

Market observers will be closely monitoring forthcoming economic data, including U.S. personal consumption expenditures and the non-farm payrolls report due Friday, to better understand the impact of tariffs on the Federal Reserve’s interest rate outlook.

Rodda added that the PCE data is anticipated to indicate further moderation in prices, which could maintain the possibility of further rate cuts by the Fed. A surprise increase in these figures could reduce the likelihood of such cuts and negatively affect gold prices. Current market expectations suggest the Fed will cut rates by approximately 95 basis points by the year’s end.

Spot silver decreased by 0.7% to $32.72 per ounce, platinum fell by 0.6% to $971.75, and palladium declined by 0.2% to $932.40.