GOLD prices remained steady on Tuesday, hovering close to a three-week low as reduced concerns over global trade conflicts and a firmer US dollar weakened demand for the safe-haven metal.
Spot gold was unchanged at $3,318.79 per ounce after hitting its lowest level since July 9 in the previous session. US gold futures saw a slight rise of 0.2% to $3,317.50.
“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 USD aren’t helping gold, looking further ahead there is still upside potential,“ said KCM Trade Chief Market Analyst Tim Waterer.
Recent developments in trade negotiations have eased market tensions. US and Chinese officials held lengthy talks in Stockholm on Monday, aiming to extend a trade truce by three months.
Additionally, the US and EU reached a framework agreement on Sunday, imposing a 15% tariff on most EU goods—half the initially threatened rate—avoiding a broader trade war.
The US dollar index remained near a one-week high, increasing gold’s cost for buyers using other currencies. Investors are now focused on upcoming US economic data, including inflation figures and employment reports, alongside the Federal Reserve’s policy meeting.
Market expectations suggest interest rates will remain unchanged.
“If weaker U.S. macro data emerges or Trump’s criticisms of the Fed inspire the central bank to adopt a more dovish tone this week, that could be positive for gold,“ Waterer added.
In other precious metals, spot silver dipped 0.2% to $38.10 per ounce, platinum rose 0.5% to $1,396.35, and palladium fell 1.2% to $1,231.55. - Reuters
