Gold declines as easing occurs The trade issues between China and the United States diminish the attractiveness of safe-haven assets. On Wednesday, gold prices experienced a decline. This occurred as a result of the alleviation of trade tensions between the United States and China. The demand for gold as a safe investment has diminished. Market participants are meticulously observing inflation metrics. This data will assist in evaluating the Federal Reserve’s policy trajectory. Market participants are closely monitoring the forthcoming Producer Price Index data. Spot silver, platinum, and palladium likewise faced declines.

Gold prices experienced a slight decline on Wednesday, as easing trade tensions between the U.S. and China diminished the demand for safe-haven assets. Meanwhile, market participants focused on upcoming inflation data to evaluate the trajectory of the Federal Reserve’s policy decisions. Spot gold experienced a decline of 0.1%, trading at $3,246.21 an ounce as of 0029 GMT. U.S. gold futures experienced a modest increase of 0.1%, reaching a price of $3,250.50.

The U.S. is set to reduce the “de minimis” tariff on low-value shipments from China to 30%, according to a White House executive order and insights from industry experts, thereby further mitigating the risks associated with a potentially harmful trade war between the two largest economies globally. On Monday, U.S. President Donald Trump stated that he does not foresee tariffs on Chinese imports reverting to 145% following the 90-day pause, expressing confidence that Washington and Beijing will reach an agreement.

Meanwhile, the United States Department of Labour reported that the consumer price index rose by 0.2% in April, whereas economists surveyed by Reuters had anticipated a 0.3% increase following the 0.1% decrease in March. Traders are anticipating the release of the Producer Price Index data, scheduled for Thursday, to gain insights into the Federal Reserve’s interest rate path. Expectations are set for 53 basis points of interest rate reductions this year, starting in September.

Gold, traditionally viewed as a safeguard against inflation, flourishes in a low-interest rate setting. On Tuesday, Trump reiterated his call for the Fed to lower rates, asserting that prices for gas, groceries, and “practically everything else” are down. Spot silver decreased by 0.3% to $32.80 per ounce, while platinum saw a slight decline of 0.1% to $987.55, and palladium experienced a drop of 0.8% to $949.26.