Optimism Over Trade Deals Triggers Investor Pullback from Gold Market

Market Overview

On Wednesday, market sentiment turned optimistic as reports indicated that the U.S. was close to finalizing trade tariff agreements with Japan, South Korea, and India. Crucially, the U.S. reportedly will not pursue a weak-dollar policy in trade talks. After briefly dipping toward the 100 mark, the U.S. Dollar Index rebounded and ended the day up 0.11% at 101.04. As risk appetite returned, investors exited the gold market, sending spot gold to a more-than-one-month low. Gold closed down 2.24% at $3,176.58 per ounce. Silver followed suit, falling 2.1% to $32.20 per ounce. Meanwhile, U.S. crude inventories rose unexpectedly, sparking oversupply concerns. WTI crude dropped 1.19% to settle at $62.82 per barrel, while Brent crude declined 1.16% to $65.77 per barrel.

What to Watch

● U.S. Rules Out Weak-Dollar Strategy in Trade Agreements; Dollar Rebounds Intraday

Sources indicate that the U.S. will not pursue dollar devaluation as part of its trade deals. Treasury Secretary Bessent is reportedly the sole negotiator authorized to handle currency-related matters, with no delegation allowed. Talks can only proceed in Bessents presence. Following the news, the U.S. Dollar Index surged around 20 points intraday to climb above 101.

● Trump Secures $1.2 Trillion Pledge from Qatar; Boeing Lands Historic Jet Order

The White House announced that the U.S. and Qatar reached over $243.5 billion in economic deals. This includes a $96 billion aircraft order from Qatar Airways, which will purchase up to 210 Boeing wide-body jets powered by GE engines. Additional agreements cover energy infrastructure, advanced engineering, quantum tech, and defense, including MQ-9B drones. The defense-related MOU alone involves potential investments exceeding $38 billion. Boeing shares jumped over 3%, hitting a 15-month high.

Key Data to Watch (GMT+8)

• 14:00 – UK Q1 Preliminary GDP YoY

• 14:45 – France April Final CPI MoM

• 17:00 – Eurozone Q1 Final GDP YoY