Bengaluru — Gold prices were little changed on Tuesday, hovering near a three-week low, as the easing fear of a global tariff war and a stronger dollar dampened bullion’s safe-haven appeal.
Spot gold held its ground at $3,311.33/oz at 4.01am GMT. The precious metal hit its lowest level since July 9 in the previous session. US gold futures held steady at $3,310.80.
“Gold trading at circa $3,300 or below is still getting the attention of buyers. While short-term market dynamics courtesy of trade deals and a stronger [dollar] aren’t helping gold, looking further ahead there is still upside potential,” KCM Trade chief market analyst Tim Waterer said.
Top US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world’s top two economies, seeking to extend a truce by three months.
The US struck a framework trade agreement with the EU on Sunday, imposing a 15% import tariff on most EU goods — half the threatened rate — and averting a bigger trade war between the two allies that account for almost a third of global trade.
The dollar index held near a more than one-week high, making gold costlier for buyers holding other currencies.
Investors are awaiting a set of US macroeconomic data this week, including inflation figures and the employment report, alongside the Federal Reserve’s two-day policy meeting beginning later in the day, with the expectation largely pointing to rates being held steady.
If weaker US macro data emerged or US President Donald Trump’s criticisms of the Fed inspired the central bank to adopt a more dovish tone this week, that could be positive for gold, Waterer said.
Spot silver was down 0.2% at $38.09/oz, while platinum gained 0.6% to $1,397.80 and palladium fell 1.9% to $1,223.02.
Reuters
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