GOLD prices rebounded on Tuesday as investors bought the dip a day after the metal hit a nearly four-week low, amid increased market volatility and a widening trade war.
Spot gold gained 0.8% to $3,005.38 an ounce as of 0605 GMT. On Monday, bullion hit its lowest level since March 13.
U.S. gold futures rose 1.6% to $3,019.60.
U.S. President Donald Trump ramped up tariff threats against China on Monday, while the European Union outlined plans for retaliatory duties, deepening fears of a drawn-out trade war that could tip the global economy into recession.
“Despite slipping in the previous sessions, gold is still strong and should remain on the upward trend” because of the bullish undertone, said Reliance Securities’ senior analyst Jigar Trivedi.
Gold is up about 15% this year, driven by robust central bank purchases and its overall appeal as a safe hedge against economic and geopolitical uncertainties.
Meanwhile, Trump doubled down on the tariffs, saying he was not considering a pause to facilitate negotiations with trading partners, but mentioned that he would engage in discussions with China, Japan and other countries over the duties.
Markets will closely monitor the minutes of the U.S. Federal Reserve’s latest policy meeting, scheduled for release on Wednesday.
Traders also await U.S. Consumer Price Index data on Thursday and the Producer Price Index on Friday for cues into the Federal Reserve’s interest rate path. Gold tends to thrive in a low-rate environment.
Futures now point to around 96 basis points worth of rate cuts by the Fed by December.
Among other metals, spot silver was steady at $30.10 an ounce and platinum rose 1.6% to $927.64. Palladium eased 0.1% to $917.78.
