Gold prices steadied below the $2,900 mark during Asian trade on Tuesday, following three consecutive sessions of losses, as traders awaited key United States economic data and the outcome of the U.S.-Ukraine Summit for further market direction.
By 4:15 pm AEDT (5:15 am GMT) spot gold was up $8.74 or 0.3% to US$2,898.15 per ounce.
Investors are closely monitoring U.S. economic releases, with the JOLTS Job Openings data scheduled for later in the U.S. session, while the highly anticipated consumer price index (CPI) report is set for release on Wednesday (Thursday AEDT).
Gold traders have engaged in profit-taking on long positions ahead of the high-impact U.S. inflation data, contributing to recent losses in the precious metal.
Meanwhile, concerns over a potential U.S. recession persist due to Trump's protectionist trade policies, which could influence the Federal Reserve’s decision on interest rate cuts this year. This outlook has kept pressure on the U.S. dollar and Treasury bond yields, helping limit the downside for gold.
On the trade front, Trump issued a fresh tariff warning on Canadian lumber on Friday, stating that the measures "may or may not come today, or on Monday, or on Tuesday".
Additionally, China's imposition of up to 15% tariffs on U.S. agricultural products took effect on Monday, heightening fears of an escalating global tariff conflict that could bolster demand for gold as a safe-haven asset.
However, the U.S.-Ukraine Summit in Saudi Arabia later on Tuesday could present a risk to gold prices. If the talks result in a bilateral minerals agreement and pave the way toward ending the Ukraine-Russia conflict, gold could face headwinds.
