Gold Retreats on Trade Optimism and Auto Tariff Easing

Prices Dip Amid Reduced Trade-Risk Premium

Gold extended declines in Asian trading on Wednesday after President Trump signed orders easing auto tariffs, and Commerce Secretary Howard Lutnick hinted at an imminent major trade deal. These developments eased some of the risk-driven buying that had propelled bullion to record highs.

• Spot Gold: Down 0.4% to $3,305.10/oz

• June Gold Futures: Down 0.6% to $3,314.94/oz

Despite this pullback, gold remains on track for its fourth consecutive monthly gain, having jumped nearly 6% in April on safe-haven demand.

Key Drivers: Tariff Relief and Fed Watch

1. Auto Tariff Easing

   • Trump’s orders grant tax credits and relief on steel and aluminum used in U.S. car production, reducing fears of higher consumer prices.

2. Trade Deal Hopes

   • Lutnick’s comments on a near-term agreement further cooled trade-war anxieties that had underpinned recent gold strength.

3. Upcoming U.S. Data

   • Investors await PCE inflation, GDP, and jobs figures to refine expectations for Federal Reserve policy.

ING analysts warn that “extended uncertainty in U.S.-China trade talks and economic instability should continue to support safe-haven demand for gold,” suggesting bouts of volatility ahead.

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Precious Metals Roundup

• Silver Futures: Down 1.3% to $32.855/oz

• Platinum Futures: Flat at $979.05/oz

With U.S. consumer confidence near two-year lows and JOLTS openings softening, markets will watch if a pivot in Fed guidance unleashes another leg of bullion buying.