Gold Prices Decline Amid Easing Trade Tensions

Gold experienced a decrease in value on Tuesday as diminishing trade tensions between the United States and its global partners lessened the metal’s attractiveness as a safe investment. Market participants are also awaiting the release of U.S. economic figures to better understand the Federal Reserve’s upcoming policy decisions.

Spot gold prices decreased by 0.4%, reaching $3,329.12 per ounce as of 0211 GMT. Similarly, U.S. gold futures saw a reduction of 0.2%, settling at $3,342.40.

IG market strategist Yeap Jun Rong commented, “The risk landscape has noticeably improved recently, with investors encouraged by the possibility that the worst of the trade disputes may be behind us, spurred by positive comments surrounding trade agreements.”

U.S. Treasury Secretary Scott Bessent stated on Monday that numerous major trade allies had presented “highly promising” proposals aimed at preventing U.S. tariffs, noting that India is likely to be among the first to finalize an agreement.

Bessent further highlighted China’s recent actions to exempt certain U.S. products from its retaliatory tariffs, indicating a desire to ease trade tensions.

The Trump administration is also set to take steps to mitigate the effects of its automotive tariffs on Tuesday by reducing some duties applied to foreign parts used in cars manufactured domestically.

However, a Reuters poll of economists reveals significant concerns that the global economy could face a recession this year, with many attributing the decline in business confidence to Trump’s tariffs.

Gold, which is traditionally regarded as a safe haven during times of political and economic uncertainty, reached a record high of $3,500.05 per ounce last week due to heightened anxieties.

Investors are closely watching key economic data this week, including the U.S. job openings report due later today, Personal Consumption Expenditures data on Wednesday, and the non-farm payrolls report scheduled for Friday.

In Dubai’s Gold Souk, the recent surge in bullion prices has brought limited cheer to jewelers.

Rong added, “Long-term structural factors supporting gold prices are expected to maintain the overall upward trend, bolstered by the potential for continued reserve diversification among central banks in emerging markets.”

Spot silver increased by 0.1% to $33.21 per ounce, platinum remained stable at $986.00, and palladium declined by 0.1% to $948.06.