Spot Gold retreated on Wednesday, while erasing the gains from the prior trading day, as easing US-China trade tensions reduced the safe-haven appeal of the metal.
According to a White House executive order, the US will reduce the “de minimus” tariff for low-value shipments from China to 30%.
US President Trump said on Monday that he did not expect tariffs on Chinese imports to return to 145% following the 90-day pause.
“I think that if we see continued progress in trade negotiations and deals being done between the US and its trading partners, gold can pull back further. $3,200 is a pretty critical level of support,” Capital.com’s financial market analyst Kyle Rodda was quoted as saying by Reuters.
On the data front, annual headline consumer inflation in the US eased to 2.3% in April, or the lowest rate since February 2021, from 2.4% in March.
And, annual core CPI inflation steadied at a four-year low of 2.8% in April.
Market players now awaited the US producer inflation data for more cues on the Federal Reserve’s policy path.
About 53 basis points of Fed rate cuts by year-end are now priced in, as early as September.
Spot Gold was last down 0.72% on the day to trade at $3,226.76 per troy ounce.
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