Gold prices fell slightly in Asian trade on Tuesday, but remained near recent peaks as safe-haven demand remained buoyed by uncertainty over U.S. plans for trade tariffs.
Gold prices have fallen in recent sessions as exemptions for electronics imports from high U.S. tariffs on China helped boost some risk sentiment. President Donald Trump on Monday also flagged the possibility of more exemptions.
But Trump's 145% tariffs on China, coupled with Beijing's 125% tariffs, have largely remained in place, signaling a bitter trade war between the world's largest economies. The idea has kept gold supported by safe-haven demand. A weaker dollar, amid a sharp sell-off in U.S. Treasury bonds, also helped the broader gold and metals market. Spot gold fell 0.4% to $3,224.60 an ounce, while June gold futures were steady at $3,240.85/oz by 1:51 p.m. ET (05:51 GMT).
Gold prices remain near record highs amid tariff, recession concerns
Spot gold prices remain near a record high of $3,245.69/oz hit in early April.
Bullion prices are supported by persistent safe-haven demand, as uncertainty over the global economy increases in the face of the US-China trade war.
Trump's sectoral tariffs, along with his continued changes to plans for more levies and exemptions, have further raised uncertainty over the economic outlook.
Uncertainty over the impact of US trade tariffs has investors starting to price in the possibility of a larger US recession this year, although the chances of a slowdown did recede after Trump announced a 90-day exemption from most of his reciprocal tariffs.
However, the president is now scheduled to announce tariffs on electronics and pharmaceuticals in the coming days, potentially triggering more market volatility.
The US is also facing a bitter trade war with China, with both sides showing little intention of easing tensions.
Other precious metals edged higher on Tuesday, although they have largely lagged gold in recent weeks. Platinum futures were steady at $956.60/oz, while silver futures rose 0.2% to $32.225/oz.(Newsmaker23)
Source: Investing.com
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