Gold price falls as China considers easing tariffs on US imports
The potential easing of tariffs marks a significant sign of anxiety within China regarding the trade conflict's impact.
- Apr 25, 2025,
- Updated Apr 25, 2025 4:15 PM IST
Gold prices experienced a notable decline on Friday, with spot gold falling 1.4% to $3,302.81 an ounce by 0636 GMT and US gold futures decreasing by 1.1% to $3,312.80. This drop is attributed to China exploring the possibility of exempting specific U.S. imports from its 125% tariffs, reflecting Beijing's concerns about the ongoing trade war's economic repercussions. The potential easing of tariffs marks a significant sign of anxiety within China regarding the trade conflict's impact, according to news agency Reuters. Meanwhile, US President Donald Trump has affirmed that trade negotiations with China are in progress, contradicting Chinese statements that no discussions have occurred to mitigate the trade tensions.
"The partial rollback of tariffs on some imports from China may be perceived as a positive step towards further de-escalation in U.S.-China trade tensions, which exert modest downward pressure on safe-haven assets like gold," IG market strategist Yeap Jun Rong told Reuters. However, a Chinese commerce ministry spokesperson indicated that for a genuine resolution, the U.S. should lift all unilateral tariff measures against China.
Despite the current drop, non-yielding bullion, which is often viewed as a safeguard against global instability, has increased significantly this year, achieving multiple record highs and reaching $3,500.05 earlier this week. The dollar index rose by 0.3%, making gold more expensive for international buyers.
"Over the longer term, structural tailwind remains intact, with further room for reserve diversification among emerging markets as they gradually align with the reserve composition of advanced economies," Rong noted, highlighting the ongoing influence of global economic adjustments on gold's performance.
Gold prices experienced a notable decline on Friday, with spot gold falling 1.4% to $3,302.81 an ounce by 0636 GMT and US gold futures decreasing by 1.1% to $3,312.80. This drop is attributed to China exploring the possibility of exempting specific U.S. imports from its 125% tariffs, reflecting Beijing's concerns about the ongoing trade war's economic repercussions. The potential easing of tariffs marks a significant sign of anxiety within China regarding the trade conflict's impact, according to news agency Reuters. Meanwhile, US President Donald Trump has affirmed that trade negotiations with China are in progress, contradicting Chinese statements that no discussions have occurred to mitigate the trade tensions.
"The partial rollback of tariffs on some imports from China may be perceived as a positive step towards further de-escalation in U.S.-China trade tensions, which exert modest downward pressure on safe-haven assets like gold," IG market strategist Yeap Jun Rong told Reuters. However, a Chinese commerce ministry spokesperson indicated that for a genuine resolution, the U.S. should lift all unilateral tariff measures against China.
Despite the current drop, non-yielding bullion, which is often viewed as a safeguard against global instability, has increased significantly this year, achieving multiple record highs and reaching $3,500.05 earlier this week. The dollar index rose by 0.3%, making gold more expensive for international buyers.
"Over the longer term, structural tailwind remains intact, with further room for reserve diversification among emerging markets as they gradually align with the reserve composition of advanced economies," Rong noted, highlighting the ongoing influence of global economic adjustments on gold's performance.