On the trade front, US President Donald Trump said China not abiding by a trade agreement negotiated earlier this month, suggesting fresh turmoil on the issue. Trump’s remarks came after Treasury Secretary Scott Bessent characterised trade talks with Beijing as “a bit stalled.”
Gold declined and the dollar advanced as traders assessed US data on consumer spending, the flow of imports and renewed trade tensions between America and China.
Consumers hit the brakes in April while the flow of imported goods plummeted by a record as companies adjusted to higher tariffs. Meanwhile, the Federal Reserve’s preferred price gauge remained tame, reinforcing bets the US central bank won’t need to lower borrowing costs until later this year. That scenario would be negative for bullion as it typically benefits from lower rates.
