Gold Dips as Trade Tensions Ease; Investors Eye Key U.S. Economic Data

Gold prices edged lower on Tuesday as easing global trade tensions reduced the metal's safe-haven appeal, while markets looked ahead to key U.S. economic data that could shape the Federal Reserve’s next policy move.Spot gold slipped 0.4% to $3,329.12 per ounce by 0211 GMT, while U.S. gold futures declined 0.2% to $3,342.40."The risk environment has clearly improved recently, with market participants buoyed by optimism that the worst of the trade tensions may be behind us amid encouraging rhetoric around trade deals," said Yeap Jun Rong, market strategist at IG.U.S. Treasury Secretary Scott Bessent said on Monday that several major trading partners had made “very good” proposals to avoid new tariffs, noting India could be among the first to finalize an agreement. Meanwhile, China’s recent exemptions on certain U.S. goods from retaliatory tariffs signaled a willingness to de-escalate.President Joe Biden's administration is also expected to ease automotive tariffs on Tuesday by reducing duties on some foreign parts used in U.S.-manufactured vehicles.Despite the improved trade sentiment, concerns linger over the broader economic outlook. A Reuters poll showed that most economists believe a global recession remains likely this year, citing weakened business confidence caused by prolonged tariff disputes.Last week, gold surged to a record high of $3,500.05 an ounce, driven by persistent geopolitical uncertainty and market volatility.Investors are now closely watching a series of upcoming U.S. economic indicators, including Tuesday’s job openings data, the Personal Consumption Expenditures (PCE) index on Wednesday, and the non-farm payrolls report due Friday."Longer-term structural tailwinds for gold prices are likely to keep the broader upward trend intact, supported by ongoing reserve diversification among emerging market central banks," added Rong.In other precious metals:Silver rose 0.1% to $33.21 per ouncePlatinum held steady at $986.00Palladium dipped 0.1% to $948.06

Gold prices edged lower on Tuesday as easing global trade tensions reduced the metal's safe-haven appeal, while markets looked ahead to key U.S. economic data that could shape the Federal Reserve’s next policy move.

Spot gold slipped 0.4% to $3,329.12 per ounce by 0211 GMT, while U.

S. gold futures declined 0.2% to $3,342.

40. "The risk environment has clearly improved recently, with market participants buoyed by optimism that the worst of the trade tensions may be behind us amid encouraging rhetoric around trade deals," said Yeap Jun Rong, market strategist at IG. U.

S. Treasury Secretary Scott Bessent said on Monday that several major trading partners had made “very good” proposals to avoid new tariffs, noting India could be among the first to finalize an agreement. Meanwhile, China’s recent exemptions on certain U.

S. goods from retaliatory tariffs signaled a willingness to de-escalate. President Joe Biden's administration is also expected to ease automotive tariffs on Tuesday by reducing duties on some foreign parts used in U.

S.-manufactured vehicles. Despite the improved trade sentiment, concerns linger over the broader economic outlook.

A Reuters poll showed that most economists believe a global recession remains likely this year, citing weakened business confidence caused by prolonged tariff disputes. Last week, gold surged to a record high of $3,500.05 an ounce, driven by persistent geopolitical uncertainty and market volatility.

Investors are now closely watching a series of upcoming U.S. economic indicators, including Tuesday’s job openings data, the Personal Consumption Expenditures (PCE) index on Wednesday, and the non-farm payrolls report due Friday.

"Longer-term structural tailwinds for gold prices are likely to keep the broader upward trend intact, supported by ongoing reserve diversification among emerging market central banks," added Rong. Silver rose 0.1% to $33.

21 per ounce Platinum held steady at $986.00 Palladium dipped 0.1% to $948.

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