opened the week on a steady note, thanks in part to the U.S. and U.K. markets being closed for public holidays. But by early morning trading on Tuesday, the yellow metal edged slightly lower. The drop comes as traders respond to a mix of easing trade concerns and fresh global tension. Investors are now watching closely for upcoming U.S. economic data, including durable goods orders and consumer confidence figures, while global developments — especially in Europe and Asia — continue to shape sentiment. Yes, to a degree. U.S. President Donald Trump has postponed a planned 50% tariff on European imports, a move that’s helped ease some of the immediate pressure in global markets. This follows what European Commission trade chief Maros Sefcovic called “productive discussions” with U.S. officials. Both sides are now working toward a trade agreement deadline of July 9, 2025.

This progress on the trade front reduced some of the urgency for investors to buy gold as a protective measure. As safe-haven demand dipped slightly, gold prices reacted by inching lower in early trade.

Despite the recent progress, investors remain cautious. While Trump’s latest decision has delayed a tariff shock, his overall trade policy remains unpredictable. The constant shifts in rhetoric and policy stance keep markets on edge.

With the U.S. heading toward the 2025 election season, policy moves could grow even more uncertain. This uncertainty keeps many traders watching from the sidelines, only making moderate moves in gold and other commodities. That’s why today’s release of durable goods orders and consumer confidence data could play a big role in shaping the week ahead.

Geopolitical stress remains a major force behind gold’s continued appeal. Over the weekend, Germany gave Ukraine the green light to strike inside Russian territory. This marks a serious shift in the conflict's dynamic. In response, the Kremlin labeled the move as “dangerously provocative.” Tensions escalated further as Russia launched aerial strikes on Ukraine for the third consecutive night, following what has been described as the largest air assault since the war began. These developments have not only increased fears of a wider regional conflict but also reinforced gold’s value as a long-term hedge against global instability. One of the most notable market signals came from China, where gold demand jumped sharply in April. According to official Hong Kong customs data, China’s net gold imports more than doubled compared to March, hitting their highest level since March 2024.

This surge suggests strong retail and institutional buying, possibly including central bank purchases, as China prepares for prolonged economic and geopolitical uncertainty. Increased demand from the world’s largest gold consumer has given global gold prices a solid foundation, even amid fluctuating market signals in the West.

All eyes are now on upcoming U.S. economic indicators. The market will be closely watching today’s reports on durable goods orders and consumer confidence, as they could provide insight into the health of the economy and the Fed’s potential next steps.

Weaker-than-expected numbers could renew interest in gold as a safe-haven asset, especially if they suggest that inflation is sticky or that the economy is slowing down. In contrast, stronger data might pull attention away from gold and toward riskier assets like equities.

Positive U.S.-EU trade talks and delayed tariffs are easing gold’s safe-haven demand but geopolitical risks keep prices supported.

Why did China’s gold imports surge in April 2025?
China’s gold imports via Hong Kong doubled in April, reflecting strong demand amid global uncertainty and boosting gold’s market outlook.