Gold prices fell to weekly lows during Asian trade on Thursday, as the United States dollar and firm Treasury yields pressured the precious metal.
The market remains uncertain over US President Donald Trump’s conflicting messages on tariffs and broader economic concerns.
By 4:05 pm AEDT (5:05 am GMT) spot gold was down US$19.83 or 0.7% to $2,896.34 per ounce.
After reaffirming earlier in the week that 25% tariffs on Canada and Mexico would take effect from March 4, Trump shifted his stance on Wednesday, suggesting the tariffs could instead be imposed from 2 April.
The uncertainty surrounding his trade policy has fueled safe-haven demand for the U.S. dollar (USD) at the expense of gold.
The rise in U.S. Treasury bond yields has also curbed gold’s upside, while month-end short-covering has contributed to the USD’s rebound. The greenback remains nearly 4% lower from its two-year high recorded in January.
Despite the USD’s strength, broader market sentiment remains cautiously optimistic, buoyed by Nvidia’s strong quarterly results.
Meanwhile, concerns over a slowing U.S. economy have intensified following Tuesday’s release of the Consumer Confidence Index, which fell by 7 points - the sharpest decline since August 2021 - to 98.3, well below expectations of 102.5.
Gold traders now turn their attention to the US Gross Domestic Product (GDP) revision for Q4 2024, due later in the session, which could influence the Fed’s interest rate outlook.
The second estimate is expected to confirm an annualised growth rate of 2.3%, in line with the advance reading.
Additionally, investors will monitor the release of U.S. durable goods orders, pending home sales, and comments from several Federal Reserve officials.
