Gold prices dip as US diplomatic relations improve

Gold prices fell 0.4% on Tuesday as trade tensions between the US and its key trading partners eased, reducing the metal's safe-haven appeal. Investors are also closely watching upcoming US economic data to gauge how the Federal Reserve (Fed) plans to proceed. 

American Treasury Secretary Scott Bessent noted that the country’s major trading partners have proposed quite favorable terms to avoid tariffs, with India expected to be among the first to finalize a deal. China has also shown willingness to ease tensions by lifting duties on certain US goods, the minister said.

In parallel, the Trump administration plans to cut auto tariffs by lowering fees on foreign components used in US-made vehicles. 

This week, investors are turning their attention to several key economic reports. Employment data will be released today, followed by Personal Consumption Expenditures (PCE) on Wednesday and Non-Farm Payrolls on Friday. According to Reuters, these indicators could greatly influence the Fed's monetary stance and, as a result, affect gold prices.