How did Trump’s policies decrease gold prices after reaching its peak?

The price of gold today continued to decrease to approach the level of 3,315 US dollars an ounce, affected by the decline in trade tensions and improvement of the appetite for risk in global markets, according to the American “FXSTREET” platform.

Reducing customs duties enhances the demand for risk

US President Donald Trump has announced plans to reduce the impact of customs duties on cars, by preventing the accumulation of taxes on foreign cars and alleviating the fees imposed on imported parts.
US Treasury Secretary Scott Besent also stated that commercial partners made “very good offers” to avoid imposing American drawings. He added that the recent exemptions for some American commodities of reprisals indicate a clear desire to calm commercial tensions.
Also read: Why is gold a good safe haven yet despite its high prices?

Gold retreats with calm commercial tensions

These developments contributed to the decline in the demand for gold as a safe haven, as Gatin Trevidy, Vice President of Commodity and Currency Analysis at LiB Securities, said that this decrease comes in light of Washington’s start of customs talks with several countries, with expectations to conclude a possible trade agreement with China. Hopes also strengthened a peace agreement between Russia and Ukraine from this trend.

Gold awaits stimuli from Friday data

Investors are also awaiting the US employment report for April, scheduled for Friday. Expectations indicate the addition of 130,000 new jobs, while the unemployment rate remains at 4.2%.
In the event that the data comes without expectations, this may lead to the decline in the US dollar, which enhances the prices of commodities denominated, especially gold.
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Analysts varied about gold expectations

On the other hand, Sharo Chanana, a strategic expert at Saksu Capital Markets, warned that optimism is that several commercial agreements can be reached in a short time that may be excessive, which paves the way for a period of fluctuations in the gold market.
The data of the Justice Commodity Trading Committee indicates that the hedge fund managers have reduced their long centers on gold to the lowest level in 14 months, which reflects an accelerated wave of sale as a result of expectations that the last gold height was exaggerated.

Gold is still high on an annual basis

Despite the recent declines, gold is still 25% since the beginning of 2025, supported by concerns about the consequences of American commercial policy, and the concern of investors about the prospects of the global economy.
These gains also supported strong flows to gold -backed investment funds, central bank purchases, and the high investment demand, especially in China.