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Gold prices extended their sharp losses for a third consecutive session on Thursday during the Asian trading hours, retreating below $3,300, as hopes for trade negotiations between the United States and key partners diminished the metal’s safe haven appeal.
As of 8:20 a.m., spot gold dropped 1.6% to $3,234 per ounce, marking its lowest level since April 16. June gold futures also fell, losing 2.1% to trade at $3,248.64 per ounce.
The yellow metal is on track for its third consecutive daily decline, following a record-setting rally last month driven by rising global economic uncertainty, during which it climbed above $3,500 per ounce.
According to a report by a Chinese state-backed media outlet on Wednesday, the Trump administration has reached out to Beijing to initiate trade talks.
On Tuesday, U.S. President Donald Trump signed two executive orders aimed at softening the impact of automobile tariffs.
This move improved market sentiment on the belief that the worst of the tariff announcements may have passed. President Trump also stated on Wednesday that the U.S. is exploring "potential" trade agreements with India, South Korea, and Japan.
These developments have eased concerns over U.S.-China trade tensions, leading to a decline in demand for gold as a safe-haven asset.
Among other precious metals, silver futures declined 1.3% to $32.115 per ounce, while platinum futures slipped 0.7% to $963.65 per ounce.
However, data released on Wednesday showed that the U.S. economy unexpectedly contracted in the first quarter, with gross domestic product shrinking by 0.3% on an annualized basis, a development expected to increase demand for safe-haven assets.
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