Over the past 24 hours, spot gold prices have trended lower. As of the close of trading on Tuesday (U.S. Eastern time), gold settled at $3,316.70 per ounce, down 0.78% from the previous session. A rebound in market risk appetite, combined with anticipation of upcoming U.S. economic data releases, has weakened demand for safe-haven assets like gold. Silver also slipped 0.63% to $32.90 per ounce, while platinum and palladium fell 0.81% and 1.07%, respectively.

On the sentiment front, investors have turned more optimistic about the outlook for U.S.-China trade relations. The U.S. Treasury confirmed that China recently proposed a plan to prevent further escalation of tariffs, including lowering duties on certain U.S. imports. Markets view this as a sign that both sides are aiming to ease long-standing tensions, which has reduced immediate geopolitical risks and dampened safe-haven demand for gold.

Meanwhile, investor focus is shifting to a series of key U.S. economic indicators due this week—most notably, April’s non-farm payrolls report and the Personal Consumption Expenditures (PCE) price index. These data points are expected to influence the Federal Reserve’s next steps on interest rates. While inflation remains above the Fed’s 2% target, internal disagreements have emerged over the future path of monetary policy. Cleveland Fed President Loretta Mester recently suggested that if incoming data show signs of economic weakness, a pivot toward more accommodative policy isn’t off the table. This uncertainty has kept some support under gold, limiting further downside—for now.

The U.S. dollar has continued to climb, boosted by robust economic stats and rising Treasury yields. The Dollar Index hit a two-week high at 105.20, putting additional pressure on gold, which is priced in dollars. From a technical standpoint, gold faced heavy selling after failing to break through resistance at $3,373. Analysts warn that if gold falls below the $3,293 support level, it could next test $3,250—around the 100-day moving average. The charts also show signs of a developing head-and-shoulders pattern, which could point to further weakness in the near term.

In the short run, markets remain highly responsive to headlines and data releases. If upcoming figures show cooling inflation and a slowdown in hiring, expectations for a rate cut later this year may build, potentially offering gold some short-term upside. Conversely, stronger-than-expected numbers could fuel further dollar strength and keep pressure on gold prices.

Looking ahead, several key events stand out: the first estimate of Q1 U.S. GDP (April 30), the Federal Reserve’s interest rate decision and Chair Powell’s press conference (May 1), and the April non-farm payrolls report along with the unemployment rate (May 2). Until these policy signals and data points become clearer, gold is likely to remain range-bound.