AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Gold steadies after prior-day dip, driven by easing geopolitical concerns
- Executive orders by Trump reduce tariff-related pressures
- Investors focus on global trade progress despite weak US economic indicators
Gold prices stabilized in early Wednesday trade following a notable decline the previous day, as easing global trade concerns and fresh executive actions from the US government calmed investor nerves. The precious metal hovered around $US3316 an ounce after shedding 0.8% in the previous session.
The pullback in gold was largely triggered by a shift in market sentiment toward risk assets after US President Donald Trump took steps to lessen the impact of auto tariffs. Two executive orders were signed, preventing additional duties on foreign-made vehicles and easing charges on car parts imported for manufacturing within the United States. These measures were interpreted by markets as a sign of progress in trade relations with several countries, particularly in the automotive sector, where companies such as Tesla (NASDAQ:TSLA), Ford (NYSE:F), and General Motors (NYSE:GM) maintain significant global supply chains.
The positive signals on trade overshadowed a series of weak economic data releases in the US. Consumer confidence dropped to its lowest point in nearly five years in April, reflecting increasing concerns over the economy and job market. Additionally, job openings in the US fell to their lowest level since September, suggesting softening labor demand.
Despite the disappointing domestic indicators, markets showed resilience, shifting funds from traditional safe-haven assets like gold into equities and other risk-on instruments. The easing of auto tariffs and a more optimistic tone around global trade appear to have temporarily reduced the urgency for hedging strategies involving gold.
Spot gold saw a slight dip of 0.1% to $US3315.87 an ounce as of 7:50am in Singapore trading hours, showing signs of consolidation after Tuesday’s retreat. Companies engaged in gold mining and production, such as Newmont Corporation (NYSE:NEM) and Barrick Gold (NYSE:GOLD), remained relatively stable during the session, mirroring gold's restrained movement.
As attention now turns toward upcoming inflation data and further developments on the trade front, market participants will be closely monitoring shifts in economic sentiment and geopolitical headlines that could once again drive demand for safe-haven assets like gold.
In the broader context, while the latest policy moves signal relief in specific sectors, the lingering uncertainty around global growth prospects continues to keep bullion in focus for longer-term investors seeking to manage macroeconomic risks.
