Gold Prices Fall Over 1% as U.S. Eases Auto Tariffs, Investors Eye Key Economic Data

Gold prices slipped more than 1% in Asian trading on Wednesday after the U.S. announced measures to soften the impact of auto tariffs and affirmed ongoing trade talks with China. Spot gold dropped 1.1% to $3,308.93 per ounce, while June gold futures fell 0.8% to $3,322.55 per ounce.

The Trump administration said it would ease tariffs on foreign auto parts used in domestically manufactured cars, according to a Wall Street Journal report. Additionally, U.S. Secretary Bessent noted that many countries had made "very good" tariff proposals and confirmed ongoing communication with China, helping ease concerns about escalating U.S.-China trade tensions.

Gold, which recently hit record highs, typically benefits from economic uncertainty, geopolitical risks, and inflation concerns. However, improved trade sentiment weighed on demand for safe-haven assets.

Among other metals, silver futures fell 0.4% to $32.862 per ounce, while platinum futures remained flat at $993.20 per ounce.

Investors are now closely watching key U.S. economic data releases this week, including the March JOLTS job openings report, first-quarter GDP figures, April jobs data, and the Federal Reserve’s preferred inflation gauge, the PCE price index. These indicators are expected to heavily influence the Fed’s interest rate policy outlook.

Copper prices stayed subdued amid cautious sentiment. London Metal Exchange benchmark copper was steady at $9,392.20 per ton, while May copper futures slipped 0.8% to $4.8620 per pound. Meanwhile, Chinese policymakers promised support for businesses impacted by tariffs but held back from introducing new stimulus measures, leaving market participants awaiting further policy clarity.