By Brijesh Patel
(Reuters) – Gold slipped on Tuesday as signs of easing tensions in the U.S.-China trade dispute weighed on the safe-haven metal, while investors awaited a series of U.S. economic data due this week for more cues on the Federal Reserve’s policy path.
Spot gold was down 0.8% at $3,314.52 an ounce, as of 1125 GMT. U.S. gold futures fell 0.7% to $3,324.30.
“Gold is being pulled down by optimism in the financial markets over a potential de-escalation in the trade war between China and the U.S. as well as a modest recovery of the dollar,” said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.[USD/]
U.S. Treasury Secretary Scott Bessent said on Monday several top trading partners had made “very good” proposals to avoid U.S. tariffs.
China’s recent moves to exempt certain U.S. goods from its retaliatory tariffs showed a willingness to de-escalate trade tensions, Bessent added.
U.S. President Donald Trump’s administration will move to reduce the impact of his automotive tariffs by alleviating some duties on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.
Spot gold is expected to end its bounce around resistance at $3,373 per ounce and retest support at $3,293 thereafter, according to Reuters technical analyst Wang Tao. [TECH/C]
“Longer-term structural tailwinds for gold prices are likely to keep the broader upward trend intact, supported by room for ongoing reserve diversification among emerging market central banks,” said IG market strategist Yeap Jun Rong.
China’s total gold imports via Hong Kong in March rose 41.9% from February, Hong Kong Census and Statistics Department data showed on Monday.
Investors will be looking out for important U.S. economic data this week, including the personal consumption expenditures price index and a monthly non-farm payrolls report on Friday.
In other markets, spot silver gained 0.2% to $33.25 an ounce, platinum rose 0.4% to $988.97 and palladium lost 0.2% to $947.31.
(Reporting by Brijesh Patel and Anmol Choubey in Bengaluru; Editing by Sahal Muhammed and David Evans)
