Gold prices eased on Thursday after reaching a three-month high of $2,763 during the previous session. The metal paused its recent three-day rally as traders shifted their focus to U.S. economic fundamentals, including weekly jobless claims data set for release later in the day.
By 3:15 pm AEDT (4:15 am GMT) spot gold prices were trading $3.06 or 0.1% lower at US$2,753.29 per ounce.
The retreat in gold prices comes as market participants assessed the implications of U.S. President Donald Trump’s latest tariff plans. Trump's proposal includes a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods. These measures have faced criticism from Republican lawmakers, as Trump intends to use the revenue from tariffs to fund government programs and offset tax cuts.
Uncertainty surrounding the tariffs has tempered demand for safe-haven assets, including gold, the U.S. dollar, and government bonds, while boosting U.S. Treasury yields. However, gold's downside was limited by optimism stemming from supportive measures introduced by China's Securities Regulatory Commission (CSRC) to stabilise the country’s equity markets. China remains the largest consumer of gold globally.
Looking ahead, traders are eyeing key U.S. economic data, including Thursday’s jobless claims and Friday’s preliminary PMI figures from S&P Global. Weak economic indicators could reinforce expectations for two Federal Reserve interest rate cuts this year, a sentiment that was reignited by last week’s softer-than-expected inflation data.
While U.S. economic statistics will be closely watched, Trump’s tariff plans are likely to dominate risk sentiment and influence gold price movements in the near term.
