Gold price fell nearly 2% to a two-week low on Thursday May 1, 2025, as signs of easing trade tensions boosted risk appetite and reduced bullion's safe-haven appeal, while a stronger U.S. dollar also weighed on prices.

Spot gold was down almost 2% to $3,222.66 an ounce, after hitting its lowest since April 15.

U.S. gold futures were down 2.7% to $3,230.

The dollar index  rose 0.3%, making dollar-denominated gold more expensive for buyers holding other currencies.

“There is ongoing hope that some trade deals are signed soon, allowing lower tariffs to stay," said UBS analyst Giovanni Staunovo, adding that this optimism, combined with a stronger dollar, was exerting pressure on gold.

U.S. President Donald Trump said on Wednesday that trade deals were possible with India, Japan and South Korea. He also said there was a "very good chance" of a deal with China.

The U.S. has approached China to seek talks over Trump's 145% tariffs, a social media account affiliated with Chinese state media said.

The U.S. economy contracted for the first time in three years in the first quarter, weakened by a surge of imports as businesses sought to pre-empt the imposition of higher tariffs.