The Gold price (XAU/USD) extends the decline to near $3,315 during the early Asian session on Wednesday. The precious metal edges lower amid easing trade tensions and better risk sentiment in global markets. Traders will keep an eye on the US ADP Employment Change, Personal Consumption ExpendituresPrice Index (PCE) and the flash Q1 Gross Domestic Product (GDP) reports, which are due later on Wednesday.

US President Donald Trump plans to soften the impact of his automotive tariffs by preventing duties on foreign-made cars from stacking with other tariffs and easing levies on foreign parts used in car manufacturing, officials said. US Treasury Secretary Scott Bessent said on Monday that key trade partners have made "very good" offers to avoid US tariffs. Additionally, recent moves to exempt certain US goods from retaliatory tariffs demonstrate a willingness to de-escalate trade tensions.

Easing trade tensions has reduced demand for gold, a traditional safe-haven asset. "The easing came amid the US opening tariff talks with multiple nations and growing expectations of a possible China-US trade agreement according to US President Donald Trump. Additionally, optimism around a potential Russia-Ukraine peace deal further weighed on safe-haven demand for gold," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Investors await a slew of important US economic data this week for fresh impetus. The US ADP Employment Change, Personal Consumption ExpendituresPrice Index (PCE), and the flash Q1 Gross Domestic Product (GDP) reports will be published later on Wednesday. On Friday, the attention will shift to the US April employment report.

The expectation for April is that the US economy will add 130,000 jobs and the Unemployment Rate will remain at 4.2%. If the reports show a weaker-than-expected outcome, this could drag the Greenback lower and boost the USD-denominated commodity price in the near term.

Source: Fxstreet