Gold prices stabilized on Tuesday after significant declines prompted by a 90-day tariff truce between the United States and China. The agreement, which saw the U.S. reduce tariffs on Chinese goods from 145% to 30% and China lower tariffs on U.S. imports from 125% to 10%, shifted investor sentiment towards riskier assets, diminishing gold’s appeal as a safe haven.
Spot gold remained flat at $3,236.95 per ounce, while June gold futures rose 0.4% to $3,240.42. The initial drop in gold prices was attributed to increased optimism in global markets, leading to a rally in equities and a stronger U.S. dollar.
Investors are now focusing on the upcoming U.S. Consumer Price Index (CPI) data, which is expected to provide further insights into inflation trends and potential Federal Reserve policy actions. Economists anticipate that inflation may have remained steady in April, influenced by recent tariff adjustments.
