Gold Prices Slip as US-China Trade Optimism Weakens Safe-Haven Demand

A stronger dollar and easing tariff tensions between the US and China trigger a decline in gold prices after last week’s record highs.

April 28, 2025 —
Gold prices declined on Monday as signs of easing tensions between the United States and China curbed safe-haven demand, while a firmer dollar further pressured bullion.

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Spot gold fell 0.8% to $3,292.43 an ounce as of 0431 GMT, pulling back from its record high of $3,500.05 reached on April 22. Meanwhile, U.S. gold futures edged up 0.2% to $3,303.70.

The U.S. dollar strengthened by 0.2% against a basket of major currencies, making gold more expensive for buyers using other currencies.

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“Financial markets, and risk assets in particular, are feeling slightly better about the tariff picture compared to earlier this month,” said Tim Waterer, Chief Market Analyst at KCM Trade. He added that optimism over a potential U.S.-China trade deal has led to waning demand for traditional safe havens like gold.

Last week, U.S. President Donald Trump indicated that trade negotiations with China were underway, signaling a possible de-escalation in the ongoing tariff war. Further boosting sentiment, China exempted some American imports from high tariffs, although it downplayed Trump’s assertion about active negotiations.

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Gold typically performs well during periods of economic uncertainty and thrives in low-interest rate environments. However, signs of thawing relations between the world’s two largest economies have lessened investor appetite for the metal.

Attention now turns to key U.S. economic data releases this week, including job openings (Tuesday), Personal Consumption Expenditures (Wednesday), and the crucial non-farm payrolls report (Friday), which could provide more clarity on the Federal Reserve’s next policy moves.

Among other precious metals, spot silver slipped 0.6% to $32.88 an ounce, platinum fell 0.2% to $969.73, and palladium dropped 0.6% to $943.28.

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gold prices, US-China trade tensions, bullion market, dollar index, safe-haven assets, gold futures, global economy, Trump China trade talks, precious metals update, Federal Reserve policy