Gold prices fell during Asian trade on Monday, pressured by a stronger United States dollar and cautious repositioning ahead of key U.S. economic data releases.
By 3:25 pm AEST (5:25 am GMT), spot gold had fallen by US$20.55, or 0.6%, to US$3,298.87 per ounce.
Investor sentiment remains fragile as markets await higher-impact data, including the U.S. first-quarter advance gross domestic product (GDP) report and non-farm payrolls (NFP) figures later this week.
The negative effects of U.S. tariffs are expected to be reflected in the upcoming GDP report. A negative print could heighten expectations of a Federal Reserve rate cut as early as June.
On the geopolitical front, U.S. President Donald Trump on Sunday urged Russia to halt its attacks on Ukraine, while U.S. Secretary of State Marco Rubio warned that the U.S. could withdraw from peace talks if there is no meaningful progress.
ANZ analysts noted: “The selloff could be short-lived, with gold fever ripping through China. Volumes have China’s futures markets have risen sharply as investors scramble for haven assets. Inflows in gold-backed ETFs in China have surged, prompting warnings from officials.”
