Gold drops 3.7% at close as safe-haven demand eases

Gold bars

Gold prices fell sharply at the close on Wednesday, as demand for safe-haven assets waned following less hawkish remarks from US President Donald Trump on China and his denial of plans to fire the Federal Reserve chair.

June gold futures shed 3.7% to settle at $3,294.1 an ounce.

"The market is starting to move past the tariff crash. You're going to see a broad rotation out of some of the safe haven assets back chasing some of the specific names like Apple, Tesla," said Phillip Streible, chief market strategist at Blue Line Futures, according to Reuters.

The US continued to soften its combative trade stance toward China. Treasury Secretary Scott Bessent said on Wednesday he believes steep tariffs between Washington and Beijing should be reduced before trade talks resume.