The dollar index climbed 0.2%, driven by positive signals from U.S. trade policy and typical month-end demand. President Trump signed executive orders on Tuesday aimed at easing the burden of auto tariffs, while administration officials confirmed a trade deal has been reached with at least one foreign partner.

Treasury Secretary Scott Bessent also suggested additional agreements with countries like India and South Korea are underway. The improved outlook helped the greenback recover ground, pressuring gold by increasing its cost in other currencies.

Gold Faces Pressure from Trade Relief, But Risk Appetite Remains Fragile

Although trade tensions have eased, the gold market has not broken down. China’s move to suspend tariffs on several U.S. goods, including ethane and some semiconductor products, signaled softening positions on both sides. However, the limited downside in gold suggests markets remain cautious, with investors still using the metal as a hedge against policy uncertainty and broader economic weakness.

U.S. Economic Data Could Shift Fed Expectations

Traders are watching for today’s U.S. GDP report, expected to show zero growth, and the March PCE inflation reading forecast at 2.2%. These data points are crucial for shaping Fed policy expectations. Weaker readings could support gold by pushing yields and the dollar lower, while stronger numbers might raise rate hike bets, making non-yielding assets like gold less attractive.

Gold Prices Forecast: Bullish Bias Holds Above Key Support Zone