FX.co ★ Gold Prices Pare Gains

Gold prices initially saw gains on Tuesday but settled to remain relatively stable at approximately $2,980 an ounce. This fluctuation came as rising Treasury yields diminished the attractiveness of non-yielding investments such as gold. The trade war tensions escalated following a confirmation from a White House official that the US plans to proceed with imposing tariffs of up to 104% on Chinese imports, which are scheduled to take effect at midnight. Earlier in the trading session, market sentiment was buoyed by optimism regarding potential progress in tariff negotiations. Treasury Secretary Bessent revealed that over 70 countries had reached out to the White House, with some promising trade deals possibly in the works. Nevertheless, the demand for safe-haven assets and the anticipation of lower interest rates continue to offer fundamental support for gold.