Gold markets opened the week under pressure, with spot prices falling 1.8% to 2,285/oz, the steepest single−session decline since March 12, as easing US−China trade tensions and stronger−than−expected economic indicators reduced safe−haven demand. The pull back follows gold′s April surge to a record 2,435/oz.”

Key Drivers:

• Trade Developments: China signals willingness to negotiate farm tariffs

• Economic Data: US Q1 GDP revised upward to 2.9%

• Dollar Strength: DXY index rebounds 0.7% from 2025 lows

Market Reactions:

• Gold ETF holdings drop $1.2B (first outflow in 11 weeks)

• Mining stocks underperform: Newmont -3.1%, Barrick -2.7%

• Silver follows gold down (-2.3% to $26.42/oz)

Expert Insight:
The sell-off comes amid shifting rate expectations, though analysts remain bullish long-term. “Gold’s current retracement fits historical consolidation patterns,” notes Citi’s Aakash Doshi. “Our $2,600/oz year-end forecast remains intact with Fed easing on the horizon.”

What’s Next?
All focus shifts to the Fed’s Wednesday announcement and Friday’s NFP release.