Gold prices steadied on Tuesday after refreshing record highs in the previous session, with momentum remaining intact as renewed trade war fears and falling United States Treasury yields continue to support demand.
By 4:10 pm (5:10 am GMT) spot gold prices were down US$14.29 per ounce or 0.5% to $2,937.91 per ounce.
Market sentiment remains cautious, with fresh protectionist rhetoric from U.S. President Donald Trump reigniting concerns over a potential trade war.
Investors are also bracing for Nvidia’s earnings report on Wednesday, adding to market uncertainty.
Despite a slight recovery in the US Dollar (USD), gold’s downside appears limited after weak US S&P Global PMI data raised concerns about economic growth and increased expectations for two Federal Reserve interest rate cuts this year.
Trade war concerns also remain a key driver for gold. Trump confirmed on Monday that sweeping U.S. tariffs on imports from Canada and Mexico would proceed after a temporary delay expires next week.
Meanwhile, Bloomberg reported that the Trump administration is planning to tighten chip export controls on China, urging Japan and the Netherlands to align with U.S. restrictions.
Additionally, uncertainty surrounding the second round of U.S.-Russia peace talks over the Ukraine conflict has contributed to gold’s strength, as geopolitical risks typically enhance demand for safe-haven assets.
