Tariff concerns ease, gold prices fall, Bitcoin soars
As tensions in US-China trade ease, gold prices fell on Tuesday, while Bitcoin continued to maintain above $90,000, with investors closely watching a series of economic reports this week.
Spot gold prices fell by 0.4% to $3,329.12 per ounce. Optimism about the direction of global trade negotiations pushed gold futures prices down by 0.2% to $3,342.40 per ounce. However, taking into account the daily decline, gold prices have risen more than 26% since early 2025.
US Treasury Secretary Scott Basset stated on Monday that several trading partners had submitted “very good” proposals to avoid punitive tariffs. According to an exclusive report by Reuters on Monday, India is one of the first countries likely to reach an agreement with Washington.
Before the US President announced readiness to engage in dialogue with China, gold prices hit a record high of $3,500.05 per ounce last week.
According to CoinGecko data, although spot and futures gold prices have slightly retreated from historic highs, Bitcoin has risen by 0.2% in the past 24 hours to reach $94,930.
Bitcoin's 24-hour trading volume surged to $30.07 billion, a 60% increase from the previous day, indicating heightened market activity and investor participation.
Following reports that the Trump administration may relax some tariff measures, investor sentiment became more optimistic. On Tuesday, the White House announced plans to remove tariffs on foreign-made parts used in the US automotive industry, which could relieve burdens in the automotive sector.
However, a Reuters survey of economists showed that most believe the global economy faces a high risk of recession in 2025. Many respondents cited tariffs and trade disruptions as factors contributing to weakened business confidence and slowing economic growth.
Some analysts remain hopeful for a positive market correction. “The long-term structural bullish factors for gold prices may sustain the overall upward trend,” said IG strategist Yeap Jun Rong.
The market is preparing for a large amount of US economic data, starting with job openings and employment data set to be released later today. Investors will also focus on the ADP private sector employment survey data to be released on Wednesday, which is expected to show that new jobs in April fell from 155,000 in March to 124,000.
