Gold prices dipped during Asian trading on Wednesday, pressured by a growing risk appetite following U.S. President Donald Trump’s decision to delay imposing steep tariffs on the European Union. The move eased some fears of a trade escalation, encouraging investors to favor riskier assets over traditional safe havens like gold.
Alongside gold, other metals faced downward pressure as the U.S. dollar experienced a mild rebound, supported by signs of stability in the Treasury market. However, bullion prices remained somewhat supported amid ongoing uncertainty around U.S. trade policies and fiscal outlook, with attention focused on upcoming trade negotiations and the progress of a contentious tax cut bill championed by Trump.
Spot gold held steady near $3,301.96 per ounce, while August gold futures inched up 0.1% to $3,331.91 by early Wednesday morning, 01:17 ET.
Tariff Postponement Spurs Risk Appetite, Weakens Gold Demand
Over the weekend, President Trump announced he would postpone the implementation of planned 50% tariffs on the EU until early July. This delay also coincides with the date when other retaliatory tariffs on various major economies are set to take effect. The postponement fueled optimism that broader tariff threats might not materialize, leading to strong gains in risk-sensitive markets.
Wall Street indexes rallied sharply on Tuesday, bolstered further by robust U.S. consumer confidence data that eased concerns over the economic outlook.
Investor focus now shifts toward several Federal Reserve officials scheduled to speak in the coming days, along with the release of the minutes from the Fed’s most recent meeting later on Wednesday – events expected to provide clearer signals on future monetary policy.
Meanwhile, market participants are also eyeing tech heavyweight NVIDIA Corporation (NASDAQ:NVDA), which is slated to report earnings later Wednesday. Nvidia’s quarterly results have historically triggered heightened volatility, given the company’s central role in the booming artificial intelligence sector and semiconductor demand.
Dollar Strength and Yield Stability Weigh on Metals
Broader metal markets traded within a narrow range on Wednesday as the dollar’s recovery, spurred in part by the tariff delay, bolstered confidence in the U.S. economy. This was reflected in somewhat steadier Treasury yields, which have climbed sharply over the last two weeks amid concerns about U.S. fiscal health and the ongoing tax bill debate in Congress.
Among precious metals, platinum futures edged down 0.1% to $1,079.85 per ounce, while silver futures nudged up 0.3% to $33.41 per ounce.
Industrial metals also softened, with London Metal Exchange copper futures falling 0.2% to $9,584.90 per ton, and U.S. copper futures dropping 0.7% to $4.71 per pound.