Gold prices rose modestly during Tuesday's Asian session, marking their first gain in four, as traders defended the US$3,000 psychological level amid uncertainty over United States President Donald Trump’s tariffs and ongoing Ukraine ceasefire discussions.
By 4:10 pm AEDT (5:10 am GMT) spot gold was up by $6.29 or 0.2% to US$3,018.41 per ounce.
Lingering uncertainty over potential U.S. tariffs and the long-term stability of Russia-Ukraine ceasefire talks revived demand for safe-haven assets, limiting the recent recovery in the U.S. dollar.
Meanwhile, Asian stocks declined, with major Chinese benchmarks remaining under pressure due to growing concerns over U.S. trade policies, as well as domestic economic risks.
On Monday, the U.S. dollar extended its rebound to fresh two-week highs, supported by expectations that Trump’s tariffs may be less severe than initially feared.
Additionally, hawkish comments from Atlanta Fed President Raphael Bostic and strong U.S. S&P Global preliminary business PMI data further boosted the Greenback, weighing on the gold price.
Bostic indicated that he no longer expects two rate cuts this year, instead projecting just one in 2025.
Looking ahead, traders will focus on U.S. Conference Board (CB) Consumer Confidence data, alongside speeches from Federal Reserve Governor Adriana Kugler and New York Fed President John Williams.
