Gold fell nearly $70 in Thursday's trading session as market sentiment recovered as trade tensions between the United States and the countries involved began to ease and ensured that the market atmosphere remained optimistic at the end of the week.
At 9.40 am, gold prices were at $3,233.91, down 0.17% since it opened in early trading on Friday in the Asian session.
US-China trade tensions showed a calming sentiment as news revealed that Washington had contacted Beijing for talks.
US President Donald Trump's recent decision to exempt some automotive industry tariffs and progress with agreements with India, South Korea and Japan provided some relief among USD investors.
Economic data on Wednesday painted a slightly bleak outlook for the United States as GDP for the first quarter of 2025 contracted and inflation measures surged.
Additionally, the Personal Consumer Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, was unchanged at around 2%.
Following the data release, investors rushed to price in a 90 basis point Fed rate cut as revealed by data from the Prime Market Terminal.
