Investing.com-- Gold prices slipped over 1% in Asian trading on Tuesday, after reports said U.S. President Donald Trump’s administration would ease the impact of auto tariffs.
Investors cautiously awaited key U.S economic indicators this week, including the Federal Reserve’s preferred inflation gauge -- the PCE price index.
As of 02:08 ET (06:08 GMT), spot gold declined 1.1% to $3,308.93 per ounce, while gold futures expiring in June fell 0.8%% to $3,322.55 an ounce.
U.S. to ease impact of auto tariffs; says in trade talks with China
The Trump administration is reportedly due to soften the impact of its automotive tariffs. The Wall Street Journal, which first reported the move, stated that the adjustment means carmakers paying Trump’s auto tariffs will be exempt from additional duties, such as on steel and aluminium.
Meanwhile, in an interview with CNBC on Monday, Treasury Secretary Scott Bessent said many countries have offered "very good" tariff proposals to the U.S. He also stated that the U.S. government is in contact with China and that it is up to Beijing to de-escalate the situation.
These developments soothed some fears around rising U.S.-China trade tensions.
Gold, which recently reached record highs, thrives in periods of economic uncertainty, geopolitical tensions, and rising inflation, as investors seek safe-haven assets to protect their wealth.
Among other precious metals, silver futures fell 0.4% to $32.862 an ounce, while platinum futures were unchanged at $993.20 an ounce.
U.S. April jobs data, Q1 GDP, PCE inflation awaited
The JOLTS job openings report for March will be released later on Tuesday, while April U.S. jobs data is scheduled for Friday.
The U.S. will also report its first-quarter gross domestic product (GDP) data, and the PCE price index this week.
These datapoints will be crucial to gauge the Fed’s rate outlook, as it has adopted a wait-and-see approach amid global trade uncertainty.
Copper prices subdued; China holds off on fresh stimulus
Copper prices were largely muted as investors sought clarity on U.S.-China tariff talks.
China’s policymakers have vowed to support businesses and workers hit by steep U.S. tariffs, but refrained from announcing fresh stimulus measures.
Benchmark copper futures on the London Metal Exchange were unchanged at $9,392.20 a ton, while copper futures expiring in May lost 0.8% to $4.8620 a pound.