HG MARKETS:

Gold prices dipped in Asia on Wednesday. This fall was largely due to investors feeling more confident about taking on risk, after U.S. President Donald Trump delayed imposing new tariffs on the European Union. The dollar also saw a slight rebound, adding to the pressure on gold and other metals.

Despite the dip, gold held some of its value because there’s still ongoing uncertainty about U.S. trade policies and the country’s financial health. The market is now looking closely at future U.S. trade agreements and the progress of a controversial tax cut bill backed by Trump.

Trump’s decision over the weekend to postpone the 50% EU tariffs until early July sparked hope that he might back off other planned tariffs. This optimism led to significant gains in riskier assets, with the stock market (Wall Street) seeing sharp increases on Tuesday. Strong U.S. consumer confidence data further boosted this positive sentiment, easing worries about the U.S. economy.

Looking ahead, the market’s attention will be on more economic indicators, including speeches from Federal Reserve officials and the minutes from the Fed’s latest meeting, due later on Wednesday. Also in focus is NVIDIA Corporation (NASDAQ:NVDA), an artificial intelligence company, which is scheduled to report its earnings. NVIDIA’s past earnings reports have often caused significant swings in risk-driven assets as investors seek clues about the AI industry and chip demand.

Overall, broader metal prices were flat to slightly down on Wednesday. This was primarily due to the recovering dollar and the renewed confidence in the U.S. economy following Trump’s tariff delay. Treasury yields, which had recently risen sharply due to concerns about U.S. fiscal health, showed some stability. The progress of the tax cut bill through Congress remains a key point of interest. Among precious metals, platinum saw a slight drop, while silver edged up. Industrial metals like copper futures also experienced minor declines.