Investing.com-- Gold prices slipped over 1% in Asian trading on Wednesday, after U.S. President Donald Trump’s administration said it would ease the impact of auto tariffs, and affirmed trade talks with China.
Investors cautiously awaited key U.S economic indicators this week, including the Federal Reserve’s preferred inflation gauge – the PCE price index.
As of 02:08 ET (06:08 GMT), Spot Gold declined 1.1% to $3,308.93 per ounce, while Gold Futures expiring in June fell 0.8%% to $3,322.55 an ounce.
US to ease impact of auto tariffs; says in trade talks with China
President Donald Trump’s administration on Tuesday said Washington will soften the impact of its automotive tariffs by easing some duties imposed on foreign parts in domestically manufactured cars.
A Wall Street Journal article, which first reported the move, stated that the adjustment means automakers paying Trump’s auto tariffs will be exempt from additional duties, such as on steel and aluminium.
Moreover, in an interview with CNBC on Monday, Secretary Bessent said many countries have offered ’very good’ tariff proposals to the U.S.
He also stated that the U.S. government is in contact with China and that it is up to China to de-escalate the situation.
These developments eased some fears around rising US-Sino trade tensions.
Gold, which recently reached record highs, thrives in periods of economic uncertainty, geopolitical tensions, and rising inflation, as investors seek safe-haven assets to protect their wealth.
Among other precious metals, Silver Futures fell 0.4% to $32.862 an ounce, while Platinum Futures were unchanged at $993.20 an ounce.
US April jobs data, Q1 GDP, PCE inflation awaited
The JOLTS job openings report for March will be released later on Tuesday, while April U.S. jobs data is scheduled for Friday.
The U.S. will also report its first-quarter gross domestic product (GDP) data, and the PCE price index this week.
These datapoints will be crucial to gauge the Fed’s rate outlook, as it has adopted a wait-and-see approach amid global trade uncertainty.
Copper prices subdued; China holds off on fresh stimulus
Copper prices were largely muted as investors sought clarity on U.S.-China tariff talks.
China’s policymakers have vowed to support businesses and workers hit by steep U.S. tariffs, but refrained from announcing fresh stimulus measures.
Benchmark Copper Futures on the London Metal Exchange were unchanged at $9,392.20 a ton, while Copper Futures expiring in May lost 0.8% to $4.8620 a pound.