Gold prices rebounded ahead of the release of major U.S. economic indicators.
On April 28 (local time), the spot price of gold rose about 1.9% to $3,330.38 per ounce from an intraday low of $3,268.62. U.S. gold futures also reversed an earlier 1.7% decline to gain 1.5%, reaching $3,347.20 per ounce.
Earlier in the session, gold prices had fallen on optimism over a potential U.S.-China trade deal. However, growing skepticism about the negotiations led to a rebound. U.S. President Donald Trump reiterated that trade talks were ongoing following a recent phone call with Chinese President Xi Jinping. However, U.S. Treasury Secretary Scott Besant said the talks were “going nowhere,” and Chinese Foreign Ministry spokesperson Guo Jia-kun refuted Trump’s claim, stating that no such call had taken place.
Charu Chanana, a strategist at online trading platform Saxo Capital Markets, said, “There is a tense calm in the market, but expecting a deal within weeks may be overly optimistic.”
Investor attention is now focused on key U.S. economic data scheduled for release this week. On the 29th, the Job Openings and Labor Turnover Survey (JOLTS) for April will be released. On the 30th, preliminary figures for first-quarter GDP and the March Personal Consumption Expenditures (PCE) Price Index are due. Then, on May 2, the April non-farm payroll report will be released. These indicators are being closely watched as they may provide insights into the impact of tariffs on the U.S. economy.
Amid the recent sharp rise in gold prices, profit-taking has also increased. According to the U.S. Commodity Futures Trading Commission (CFTC), hedge funds have reduced their net long positions in gold futures and options to the lowest level in 14 months.
British investment bank Barclays commented, “The surge in gold ETF trading volumes and the expansion of options investment suggest that gold prices are rising faster than fundamental economic conditions would warrant,” adding, “The market may be overheating.”
Gold prices have risen about 25% since the beginning of the year, supported by increased central bank purchases and speculative demand in China.
