Gold prices ended Tuesday's session on a higher note as traders bought the precious metal amid uncertainty over US President Donald Trump's tariff plans, which have kept market participants on edge. XAU/USD was trading at $3,240 per troy ounce, up more than 6.50%.

The precious metal rose sharply towards the end of the New York session on Tuesday as US Treasury yields continued to fall for a second straight day. Concerns that US President Trump will start imposing tariffs on pharmaceuticals soured the market mood.

Keeping the trade war in the air, China ordered its domestic airlines to halt deliveries of Boeing jets, adding to the sour mood among market participants.

US data was mixed, with import prices remaining unchanged. The headline New York Fed Manufacturing performed better than expected, as did some internal data. However, prices paid rose into expansionary territory, and the six-month outlook worsened.

This week, Gold traders will be watching March Retail Sales along with speeches by Fed speakers, especially Fed Chair Jerome Powell, on Wednesday. Investors await housing data and Initial Jobless Claims for the rest of the week.

Daily Market Movers Summary: Gold prices firm, as US real yields fall

US 10-year Treasury yields plunged four and a half basis points to 4.339%. US real yields fell three and a half bps to 2.149%, as indicated by the US 10-year Treasury Inflation-Protected Securities yield which failed to cap Gold prices.

NY Empire State Manufacturing Index improved to -8.1 in April 2025 from -20 in March, the lowest reading since May 2023, compared to estimates of -14.5. However, the reading suggests that business activity is slowing while input prices are rising.

March Retail Sales are expected to rise to 1.3% MoM from 0.6% on Wednesday. However, the so-called control group used for calculating Gross Domestic Product (GDP) is expected to fall from 1% to 0.6%, implying that households are starting to cut spending amid the economic slowdown.

Furthermore, Industrial Production for the same period is expected to shrink by 0.2% MoM, below the 0.7% expansion in February. This could end a run of positive readings after three straight months of contraction witnessed from September to November 2024.

Money market participants have priced in an 85bps easing towards the end of 2025. The first cut is expected in July.(Newsmaker23)

Source: Fxstreet