Gold rises over 1% despite easing trade tensions

Gold bars

Gold prices rose more than 1% on Thursday, as investors stepped up purchases of the yellow metal after a sharp 3.5% drop in the previous session, despite signs of easing trade tensions and optimism over a potential US-China deal.

June gold futures climbed 1.05%, or $34.5, to $3,328.9 an ounce by 9:37 a.m. Mecca time, while spot prices were up 1% at $3,320.99.

Silver futures for May delivery fell 0.75% to $33.3 an ounce, while spot platinum edged up 0.15% to $974.05.

Gold’s gains were supported by a weaker dollar, with the US dollar index—measuring the greenback against a basket of six major currencies—down 0.25% at 99.59.

Sources told the Wall Street Journal that the Trump administration is considering cutting its steep tariffs on Chinese imports to around 50–65%, down from the current 145%.

The White House also confirmed to CNBC on Wednesday that President Donald Trump is considering exempting automakers from some of the tariffs imposed by his administration, in a move seen as a step back from the ongoing trade war.