Gold prices fell during Asian trading on Wednesday, pulling back from recent record peaks as market sentiment turned following U.S. President Donald Trump’s softer remarks on trade tariffs and the Federal Reserve’s direction.

• Spot gold decreased by 1% to $3,347.54/oz

• Gold futures for June delivery declined 1.8% to $3,356.99/oz

• Gold had peaked at $3,500.33/oz earlier this week.

This decline occurred amid a global risk-on sentiment as investors shifted away from safe-haven assets like gold and into equities.

Factors Behind the Pullback

Trump Eases Tariff Policies

Trump’s indication that he would consider lowering tariffs on China, contingent on productive discussions, generated optimism. This is significant, especially considering:

• The U.S. previously enforced 145% tariffs on certain Chinese imports.

• China retaliated with 125% tariffs on U.S. imports.

Despite this positive shift, uncertainty lingers as there’s minimal sign of China softening its demands.

Reduced Criticism of the Fed

Trump also eased his critical stance on Chairman Powell, stating his intention to keep Powell in position, which bolstered the U.S. dollar and placed further downward pressure on gold prices.

Overall Metal Performance and Market Sentiment

While certain metals rose modestly due to improved risk appetite, gold’s retreat persisted amid continued geopolitical and economic uncertainties. Investors remain cautious, especially regarding:

• Fluctuating global trade scenarios.

• Inconsistent signals from U.S. policymakers.

• Potential future actions from the Federal Reserve.

Keep Up with Metals and Economic Trends

• Commodities API: Follow live prices for gold, silver, and energy to enhance market decisions.
• Economics Calendar API: Stay updated on Fed announcements and key economic indicators.