Gold Closes Lower But Well Off Worst Levels

(RTTNews) - Mirroring the performance seen in the previous session, gold futures regained ground after falling sharply in early trading on Wednesday but still ended the day lower.

After falling as much as $50.80 or 1.5 percent to an intraday low of $3,268 an ounce, gold for May delivery closed down $13.80 or 0.4 percent at $3,305 an ounce.

Despite ending the month on a downbeat note, the price of gold for May delivery soared by $182.20 or 5.8 percent in April.

Gold initially came under pressure on yesterday's positive news on the trade front, with Commerce Secretary Howard Lutnick telling CNBC the Trump administration had reached its first trade deal.

Lutnick declined to name the country involved but said he expects their prime minister and parliament to give their approval "shortly."

Treasury Secretary Scott Bessent also told reporters the U.S. is "very close" to a trade deal with India, has had "substantial talks" with Japan and has "the contours of a deal" with South Korea.

However, the price of gold showed a notable recovery attempt following the release of a Commerce Department report showing the U.S. economy unexpectedly shrank in the first three months of 2025.

The Commerce Department said real gross domestic product fell by 0.3 percent in the first quarter after surging by 2.4 percent in the fourth quarter of 2024. Economists had expected GDP to rise by 0.4 percent.

The unexpected dip by GDP primarily reflected an increase in imports, which are a subtraction in the calculation of GDP.

A separate report from payroll processor ADP showing private sector employment in the U.S. grew by much less than expected in the month of April also increased the safe haven appeal of gold.