Gold Slides As Prospect Of US Trade Talk Deals Cuts Haven Demand
Gold fell for a third day on signs of potential trade-talk progress between the US and several other nations, quelling demand for havens even as signs of slowdowns have emerged in the largest economies.
Prices shed as much as 1.8% as investors weighed improving sentiment on Wall Street after Donald Trump's trade representative said he was nearing an announcement of a first tranche of deals. Adding to the optimism, China Central Television said the US had reached out to Beijing through various channels.
Bullion remains about a quarter higher this year after hitting a record above $3,500 last week before losing some ground. The ascent has been driven mainly by investors taking refuge in the haven asset as Trump's fast-evolving trade policy upended markets and stoked fears of a global slowdown. Speculative demand in China and central-bank buying has also supported gains.
Data on Wednesday 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. That saw traders boost bets on US monetary easing, with four quarter-point rate cuts 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.
Looking ahead, a key monthly US jobs report due Friday will shed more light on the initial effects from Trump's trade policies on the economy.
Spot gold was 1.7% lower at $3,231.84 an ounce at 11:23 a.m. in Singapore. The Bloomberg Dollar Spot Index edged higher. Silver fell by more than 1%, as platinum and palladium edged lower.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
