Gold prices remained under pressure during Asian trade on Tuesday as the United States dollar ticked higher amid ongoing trade talks between the United States and China in London.
By 3:40 pm AEST (5:40 am GMT), spot gold was down US$9.05, or 0.3%, to US$3,316.91 per ounce.
According to Bloomberg, trade discussions between the two nations will continue into a second day, with U.S. Commerce Secretary Howard Lutnick describing Monday’s session as "fruitful".
U.S. President Donald Trump echoed the cautious optimism, stating, “China is not easy but we are doing well with China,” although he did not provide specific updates on contentious issues such as technology transfers and rare earth exports.
The renewed demand for the U.S. dollar came amid a sharp drop in the Japanese yen, following dovish remarks from Bank of Japan Governor Kazuo Ueda.
Ueda said, “We will raise interest rates if we have enough confidence that underlying inflation nears 2% or moves around 2%.” His comments suggested a patient approach to policy tightening, leading to a decline in the Japanese currency.
Traders are also positioning ahead of Wednesday’s U.S. consumer price index (CPI) data, which could provide fresh signals on the Federal Reserve’s interest rate path and influence near-term gold direction.
