NEW YORK: Gold fell for a third day on signs of potential trade-talk progress between the United States and China, stifling demand for haven assets.
Bullion slipped as much as 0.6% before trading near US$3,275 an ounce.
State-run China Central Television said the US has been reaching out to Beijing through various channels.
News that the Trump administration was nearing an announcement of a first tranche of deals that would reduce planned tariffs against some countries also soothed some concerns about global trade prospects.
On Wednesday, the precious metal slipped further from its record high reached last week, even after data showed the US economy contracted at the start of the year for the first time since 2022 due to a monumental pre-tariffs import surge.
The contraction saw traders boost bets on US monetary easing, with four quarter-point rate cuts now priced in this year by the Federal Reserve to help prevent a recession.
Lower rates are typically positive for bullion as it pays no interest.
Gold has climbed about 25% this year, mainly driven by investors taking refuge in the haven asset as US President Donald Trump’s fast-evolving trade policy upended markets and stoked fears about a global slowdown. The rally has also been supported by inflows into bullion-backed exchange-traded funds, central-bank buying and signs of strong speculative demand in China, even as physical consumption in the world’s biggest buyer falls.
Looking ahead, a key US jobs report due today may shed light on the initial effects of Trump’s trade policies on the economy.
Spot gold was down 0.5% to US$3,273.40 an ounce as of 8.05am in Singapore.
The Bloomberg Dollar Spot Index edged higher. Silver and platinum were little changed, while palladium edged lower. - Bloomberg
