Gold prices remained subdued near a one-week low on Tuesday following a temporary tariff truce between the United States and China, which revived investor confidence and reduced the demand for safe-haven assets like gold.
As of 03:09 GMT, spot gold held steady at $3,230.99 per ounce, after falling 2.7% in the previous session. U.S. gold futures edged up 0.2% to $3,235.20.
The recent retreat in gold prices comes after Washington and Beijing agreed to slash reciprocal tariffs for three months, with the U.S. cutting duties on Chinese imports from 145% to 30%, and China lowering tariffs on American goods from 125% to 10%. The deal followed two days of negotiations in Geneva and sparked a rally in global equity markets.
“The prospect of improved U.S.-China trade ties has boosted risk appetite, weakening gold’s safe-haven appeal,” said Tim Waterer, Chief Market Analyst at KCM Trade. However, a consolidating dollar has allowed gold to see a mild rebound, he added.
Federal Reserve Governor Adriana Kugler said the tariff pause might reduce the urgency for the U.S. Fed to cut interest rates, as trade tensions ease. Nevertheless, investors are closely eyeing the upcoming U.S. Consumer Price Index (CPI) data due later today, which could shape expectations for monetary policy.
Despite the current lull, analysts believe gold still holds value for cautious investors. “Buyers will likely return on dips, given that underlying geopolitical and economic risks persist,” Waterer noted.
Citigroup expects gold to remain in a short-term range of $3,000–$3,300, and has downgraded its 0–3 month price forecast to $3,150.
Meanwhile, other precious metals showed mixed trends:
- Silver rose 0.6% to $32.78/oz
- Platinum gained 0.8% to $982.70/oz
- Palladium fell 0.4% to $942.19/oz
The market remains watchful for signs of sustained inflation pressure or fresh geopolitical developments that could once again swing sentiment in favor of gold.
