Gold prices lifted in Thursday's Asian session, recovering from a two-day slide as dip-buying returned and the United States dollar weakened on fresh economic and trade concerns.
By 3:10 pm AEST (5:10 am GMT), spot gold gained US$36.88, or 1.1%, trading at US$3,324.00 per ounce, recovering from weekly lows of $3,260 per ounce in the prior session.
The recovery in gold coincides with a pause in the relief rally seen in global equities, which was previously fuelled by President Donald Trump’s softened tone on Federal Reserve Chair Jerome Powell and the U.S.-China trade agreement.
Further weighing on the U.S. dollar was disappointing macroeconomic data. The S&P Global US PMI Composite Output Index dropped from 53.5 in March to 51.2 in April, marking a 16-month low and sparking renewed concerns about a slowdown in U.S. business activity.
The figures may open the door for more aggressive interest rate cuts by the Federal Reserve in the coming months.
Investor sentiment was also influenced by developments in U.S.-Japan trade talks. According to NHK, citing government sources, the U.S. informed Japan it would not be granted special exemptions on tariffs during discussions earlier this month - a signal of continued trade friction that has pressured the dollar.
