Gold prices stabilised during Tuesday's Asian trade, following a sharp pullback from near-record highs in the previous session as traders awaited key U.S. economic data and Federal Reserve policy updates.
By 4:05 pm AEDT (5:05 am GMT) spot gold was up $3.02 or 0.1% to US$2,743.64 per ounce.
The Trump administration's escalating trade war rhetoric is adding pressure to global markets. Late Monday, U.S. Treasury Secretary Scott Bessent proposed universal tariffs starting at 2.5% on imports, gradually increasing each month.
President Trump echoed these sentiments, suggesting higher tariffs on key imports such as computer chips, pharmaceuticals, steel, aluminium, and copper, stating that he desires rates "much bigger" than the initial 2.5%.
The tariff threats have sparked renewed risk aversion, bolstering demand for the safe-haven U.S. dollar while weighing on global equities.
Meanwhile, the extended global sell-off triggered by DeepSeek's low-cost artificial intelligence model continues to impact markets, with Nvidia suffering an 18% drop on Tuesday.
Traders are now turning their attention to U.S. mid-tier data releases, including durable goods orders and CB consumer confidence.
Additionally, markets are on alert as the Federal Reserve begins its two-day monetary policy meeting on Tuesday. Fed Chair Jerome Powell’s press conference on Wednesday will be closely monitored for insights into the central bank's future policy trajectory, which could further sway gold prices.
