Market News

BY Sybilla Gross

(Bloomberg) — Gold (GC=F) declined on expectations President Donald Trump will ease the impact of his auto tariffs, weighing on haven demand amid hopes of a further dialing down of trade tensions.

Bullion fell as much as 1.2% to $3,305.23 an ounce, following a 0.7% gain in the previous session, after a White House official said some levies on foreign parts for cars and trucks would be lifted and imported automobiles would be given a reprieve from separate tariffs on aluminum and steel. A gauge of the dollar strengthened, making bullion more expensive for most buyers as it’s priced in the greenback.

Traders continue to weigh the outlook for the global economy amid heightened uncertainty over the impact of the fast-developing US-led trade war, which has stoked haven demand for gold and led to its record-breaking run in recent months. The consequences of Trump’s tariff agenda should become even clearer this week, with a raft of data due on American jobs, inflation and economic growth.

“Although negotiations may progress slowly, the White House’s renewed willingness to engage has shifted market sentiment from panic selling to cautious optimism, putting some downward pressure on gold,” Pepperstone Group Ltd. research strategist Dilin Wu said in a note.