Gold prices (XAU/USD) eased to approximately $3,310 during the early Asian session on Monday, retreating from the record highs reached last week. The decline follows indications that global trade tensions may be alleviating.
US Agriculture Secretary Brooke Rollins confirmed on Sunday that the Trump administration is engaged in daily discussions with China regarding tariffs, according to Reuters. Rollins highlighted that negotiations are ongoing, with trade deals with other countries “very close” to being finalized.
Yuxuan Tang, a strategist at JPMorgan Private Bank, commented, “Headlines about potential partial exemptions in retaliatory tariffs further boosted market sentiment, allowing gold to dip below the $3,300 threshold.”
In contrast, fears of a US recession had been mounting earlier this month after President Donald Trump announced sweeping tariffs. The International Monetary Fund (IMF) issued a warning last week, noting that the US faces an increased risk of recession, as the trade dispute contributes to a global economic slowdown. These conditions have traditionally pushed investors toward gold, seen as a safe-haven asset.
Gold traders are now turning their attention to key upcoming economic data, with the preliminary reading of US Gross Domestic Product (GDP) for the first quarter scheduled for release on Wednesday. On Friday, the focus will shift to the US April employment report, including key metrics such as Nonfarm Payrolls (NFP), the Unemployment Rate, and Average Hourly Earnings.
