Gold prices extended their decline for a third consecutive session on Thursday, falling to fresh two-week lows as the United States dollar continued its recovery amid renewed hopes for U.S. trade agreements.
By 4:05 pm AEST (6:05 am GMT) spot gold prices were down by $47.3 or 1.5% to 3,241.17 per ounce.
Meanwhile, the U.S. dollar index gained 0.3% following upbeat remarks from U.S. President Donald Trump, who suggested the U.S. is close to potential trade deals with India, South Korea, and Japan.
He also noted there is a “very good chance” of reaching an agreement with China. These developments boosted risk appetite and eroded gold’s appeal as a safe-haven asset.
Expectations of a de-escalation in the U.S.-China trade dispute continue to weigh on the precious metal, as investors reassess the demand for defensive positions.
Among data releases, the first estimate of U.S. gross domestic product (GDP) showed a contraction of 0.3% in Q1 2025, marking the first decline in three quarters. The downturn was largely attributed to a surge in imports, as businesses moved to front-load purchases ahead of anticipated tariffs.
Market participants are now looking ahead to key U.S. economic data, including the ISM Manufacturing PMI and weekly jobless claims, for fresh direction ahead of Friday’s closely watched nonfarm payrolls (NFP) report.
