Gold prices remained little changed in Tuesday trade as investor sentiment shifted in response to fresh signals from the White House on tariff policies and a firmer United States dollar.
By 3:55 pm AEST (5:55 am GMT) spot gold was down just 46 cents or 0.02% to US$3,335.76 per ounce.
Trump’s comments suggesting that the August 1 tariff deadline was “not 100% firm” and that there remained room for negotiation helped ease market concerns.
The prospect of further trade talks reduced safe-haven demand for gold, which typically benefits during periods of geopolitical uncertainty.
In addition, the U.S. dollar strengthened as traders viewed Trump’s comments as a sign of economic stability. A stronger dollar typically weighs on USD-denominated commodities such as gold, as it makes them more expensive for holders of other currencies.
Looking ahead, traders are expected to keep a close eye on further developments in U.S. trade policy. Any resurgence in tensions or delays in negotiations could revive demand for safe-haven assets, potentially lifting gold prices.
Despite the current pullback, the downside for gold may be limited due to persistent demand from global central banks. According to the latest data from the World Gold Council (WGC), gold buying by central banks accelerated in May, reinforcing long-term bullish support for the metal.
China’s central bank also remained an active buyer, adding to its gold reserves for an eighth consecutive month in June, according to official data released Monday by the People’s Bank of China (PBOC).