Gold declined and the dollar advanced as traders assessed US data on consumer spending, the flow of imports and renewed trade tensions between America and China.
Consumers hit the brakes in April while the flow of imported goods plummeted by a record as companies adjusted to higher tariffs. Meanwhile, the Federal Reserve’s preferred price gauge remained tame, reinforcing bets the US central bank won’t need to lower borrowing costs until later this year. That scenario would be negative for bullion as it typically benefits from lower rates.
On the trade front, US President Donald Trump said China not abiding by a trade agreement negotiated earlier this month, suggesting fresh turmoil on the issue. Trump’s remarks came after Treasury Secretary Scott Bessent characterised trade talks with Beijing as “a bit stalled.”
Gold is headed for a weekly loss of 2% after registering a nearly 5% gain the previous week.
The price decline was also driven by technical factors, according to Kelvin Wong, senior analyst at Oanda Asia Pacific Pte. “The price action in gold has twice failed to break above the key near-term resistance level of US$3,328 ($4,278.39),” he said.
The precious metal is still up 25% this year, supported by its haven appeal as markets are rocked by uncertainties surrounding Trump’s tariff agenda.
See also: Gold edges lower on stronger dollar ahead of US labour figures
Spot gold was down 0.9% to US$3,289.25 an ounce as of 12.30pm in New York. Silver, palladium and platinum declined.
