Gold flirts with 1% loss on Tuesday while markets see tariff fears have peaked

LONDON (April 29) Gold price (XAU/USD) is seeing buyers and sellers being pushed towards each other as Bullion gears up for a breakout, currently trading around $3,313 at the time of writing on Tuesday. The consolidation comes as traders and markets tweak their positioning in the precious metal ahead of a possible announcement by United States (US) President Donald Trump on car tariffs. The rumor in markets is that Trump will ease auto tariffs, which would reduce demand for Gold and ease trade tensions, Bloomberg reports. 

US economic data will be the second driver this week, which will become important after the Texas Federal Reserve (Fed) Manufacturing Activity Tracker. The widely followed measure weakened significantly as participants expressed their current sentiment with words like “chaos” and “insanity”, in order to describe the turmoil spurred by Trump’s tariffs, the Dallas Fed report mentioned, according to Bloomberg. 

Daily digest market movers: Bessent positive on trade deals coming

• US Treasury Secretary Scott Bessent told CNBC on Monday that the US has put China on hold for now as it seeks trade deals with between 15 and 17 other countries, while indicating it’s up to Beijing to take the first step in de-escalating the tariff fight, Reuters reports.
• On Monday, the Dallas Fed Manufacturing Business Index for April fell to -35.8, coming from -16.3. The negative doubling plunge in the sentiment index takes the indicator to levels not seen since the pandemic took place, Reuters reports. This could be one of the data points this week, together with the upcoming preliminary US Gross Domestic Product (GDP) for the first quarter due on Wednesday and the Nonfarm Payrolls (NFP) print on Friday, for the Federal Reserve to assess its policy decision for the meeting on May 7. 
• China is pushing back hard against the US with the People’s Daily, the flagship newspaper of the Chinese Communist Party, saying in a commentary Tuesday morning that the US should stop its wrongdoing of imposing tariffs. Foreign Minister Wang Yi also said if nations choose to remain silent, compromise and retreat, it will only lead to the bullies making further advances, Bloomberg reports.

FXStreet