Gold Slips as U.S.-China Trade Tensions Ease

Gold pulled back Tuesday as optimism over softening U.S.-China trade tensions weighed on safe-haven demand, just ahead of major U.S. economic data releases.

Gold spot prices dropped 0.8% to $3,315.84 per ounce. U.S. gold futures slipped 0.4% to settle at $3,333.60. Silver declined 0.4% to $33.02, platinum eased nearly 1% to $976.50, and palladium fell 1.3% to $936.41.

Gold had hit a record high of $3,500.05 per ounce last week.

The retreat comes as President Donald Trump’s administration moves to reduce the effect of auto tariffs by lowering taxes on foreign parts used in U.S.-made vehicles. Meanwhile, China has offered tariff exemptions on some U.S. goods.

These developments have triggered a sell-off in gold, historically seen as a hedge during global uncertainty.

With safe-haven demand weakening, analysts expect increased liquidation near the $3,500 mark. Still, some forecast gold could hit $3,800 by year-end.

Investor focus now turns to Wednesday’s PCE inflation data and Friday’s non-farm payrolls report for clues on the Federal Reserve’s next policy move.