Gold Prices Stabilize as U.S.-China Tariff Truce Shifts Market Sentiment; Inflation Data Eyed

Gold prices steadied in early Asian trading on Tuesday, halting a sharp selloff triggered by the breakthrough U.S.-China tariff truce that boosted appetite for riskier assets. While the yellow metal found some footing, further upside remained capped by renewed dollar strength and cautious investor sentiment ahead of key U.S. inflation data.

As of 00:26 ET (04:45 GMT), spot gold held flat at $3,236.95 an ounce, while gold futures for June delivery edged up 0.4% to $3,240.42 an ounce.

Risk Appetite Weighs on Gold

Bullion had tumbled on Monday after the United States and China agreed to drastically lower tariffs on each other’s goods for a 90-day period, following high-level trade talks in Geneva. Under the agreement:

• U.S. tariffs on Chinese goods will fall from 145% to 30%.
• Chinese tariffs on U.S. imports will drop from 125% to 10%.

The announcement ignited optimism about a potential thaw in the protracted trade war, spurring a rally in global equities. Wall Street surged between 2.5% and 4.5%, as traders rotated into risk-driven assets and exited defensive positions like gold.

At the same time, the U.S. dollar strengthened significantly, buoyed by positive sentiment over the economic outlook, further pressuring gold as a non-yielding asset priced in greenbacks.

Precious Metals and Industrial Commodities Mixed

Other precious metals saw modest rebounds but remained under pressure from the prior session:

• Platinum futures rose 0.5% to $982.65/oz.
• Silver futures jumped 1.7% to $33.163/oz.

Meanwhile, industrial metals continued to gain, supported by the improved global demand outlook:

• Copper futures on the LME rose 0.4% to $9,519.35 a ton.
• U.S. copper futures edged up 0.1% to $4.6335 a pound.

All Eyes on U.S. Inflation Data

Markets are now firmly focused on the U.S. consumer price index (CPI) report for April, due later Tuesday. The data is expected to show persistent inflationary pressures, particularly after recent trade policy shifts.

Higher CPI readings could reinforce the Federal Reserve’s cautious stance on interest rates. Goldman Sachs revised its outlook, now forecasting only one Fed rate cut in 2025, down from three earlier projections—an outlook that may limit gold’s appeal in the short term.

A stronger dollar and firmer yields would further dampen bullion demand, although any downside surprise in inflation could provide a fresh tailwind for gold and other safe-haven assets.

For now, gold traders remain caught between waning trade war fears and sticky inflation expectations, with the next move likely hinging on the inflation print.

Gold Prices Stabilize as U.S.-China Tariff Truce Shifts Market Sentiment; Inflation Data Eyed

Gold prices steadied in early Asian trading on Tuesday, halting a sharp selloff triggered by the breakthrough U.S.-China tariff truce that boosted appetite for riskier assets. While the yellow metal found some footing, further upside remained capped by renewed dollar strength and cautious investor sentiment ahead of key U.S. inflation data.

As of 00:26 ET (04:45 GMT), spot gold held flat at $3,236.95 an ounce, while gold futures for June delivery edged up 0.4% to $3,240.42 an ounce.

Risk Appetite Weighs on Gold

Bullion had tumbled on Monday after the United States and China agreed to drastically lower tariffs on each other’s goods for a 90-day period, following high-level trade talks in Geneva. Under the agreement:

• U.S. tariffs on Chinese goods will fall from 145% to 30%.
• Chinese tariffs on U.S. imports will drop from 125% to 10%.

The announcement ignited optimism about a potential thaw in the protracted trade war, spurring a rally in global equities. Wall Street surged between 2.5% and 4.5%, as traders rotated into risk-driven assets and exited defensive positions like gold.

At the same time, the U.S. dollar strengthened significantly, buoyed by positive sentiment over the economic outlook, further pressuring gold as a non-yielding asset priced in greenbacks.

Precious Metals and Industrial Commodities Mixed

Other precious metals saw modest rebounds but remained under pressure from the prior session:

• Platinum futures rose 0.5% to $982.65/oz.
• Silver futures jumped 1.7% to $33.163/oz.

Meanwhile, industrial metals continued to gain, supported by the improved global demand outlook:

• Copper futures on the LME rose 0.4% to $9,519.35 a ton.
• U.S. copper futures edged up 0.1% to $4.6335 a pound.

All Eyes on U.S. Inflation Data

Markets are now firmly focused on the U.S. consumer price index (CPI) report for April, due later Tuesday. The data is expected to show persistent inflationary pressures, particularly after recent trade policy shifts.

Higher CPI readings could reinforce the Federal Reserve’s cautious stance on interest rates. Goldman Sachs revised its outlook, now forecasting only one Fed rate cut in 2025, down from three earlier projections—an outlook that may limit gold’s appeal in the short term.

A stronger dollar and firmer yields would further dampen bullion demand, although any downside surprise in inflation could provide a fresh tailwind for gold and other safe-haven assets.

For now, gold traders remain caught between waning trade war fears and sticky inflation expectations, with the next move likely hinging on the inflation print.

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Gold prices steadied in early Asian trading on Tuesday, halting a sharp selloff triggered by the breakthrough U.S.-China tariff truce that boosted appetite for riskier assets. While the yellow metal found some footing, further upside remained capped by renewed dollar strength and cautious investor sentiment ahead of key U.S. inflation data.

As of 00:26 ET (04:45 GMT), spot gold held flat at $3,236.95 an ounce, while gold futures for June delivery edged up 0.4% to $3,240.42 an ounce.

Risk Appetite Weighs on Gold

Bullion had tumbled on Monday after the United States and China agreed to drastically lower tariffs on each other’s goods for a 90-day period, following high-level trade talks in Geneva. Under the agreement:

• U.S. tariffs on Chinese goods will fall from 145% to 30%.
• Chinese tariffs on U.S. imports will drop from 125% to 10%.

The announcement ignited optimism about a potential thaw in the protracted trade war, spurring a rally in global equities. Wall Street surged between 2.5% and 4.5%, as traders rotated into risk-driven assets and exited defensive positions like gold.

At the same time, the U.S. dollar strengthened significantly, buoyed by positive sentiment over the economic outlook, further pressuring gold as a non-yielding asset priced in greenbacks.

Precious Metals and Industrial Commodities Mixed

Other precious metals saw modest rebounds but remained under pressure from the prior session:

• Platinum futures rose 0.5% to $982.65/oz.
• Silver futures jumped 1.7% to $33.163/oz.

Meanwhile, industrial metals continued to gain, supported by the improved global demand outlook:

• Copper futures on the LME rose 0.4% to $9,519.35 a ton.
• U.S. copper futures edged up 0.1% to $4.6335 a pound.

All Eyes on U.S. Inflation Data

Markets are now firmly focused on the U.S. consumer price index (CPI) report for April, due later Tuesday. The data is expected to show persistent inflationary pressures, particularly after recent trade policy shifts.

Higher CPI readings could reinforce the Federal Reserve’s cautious stance on interest rates. Goldman Sachs revised its outlook, now forecasting only one Fed rate cut in 2025, down from three earlier projections—an outlook that may limit gold’s appeal in the short term.

A stronger dollar and firmer yields would further dampen bullion demand, although any downside surprise in inflation could provide a fresh tailwind for gold and other safe-haven assets.

For now, gold traders remain caught between waning trade war fears and sticky inflation expectations, with the next move likely hinging on the inflation print.