Gold steadied after a sharp selloff as a major de-escalation in US-China trade tensions hurt demand for safe-haven assets.

Bullion traded near $3,237 an ounce — after falling 2.7% on Monday — with investors betting on a recovery in stocks and riskier assets. The world's largest economies agreed to a temporary tariff rollback, with the US cutting duties on Chinese goods to 30% from 145% for a 90-day period, while Beijing lowered its levy on most goods to 10%.

The US dollar rose the most since a post-election rally in November, while Treasury yields rose — both acting as a drag on gold. Traders now see just two interest rate cuts from the Federal Reserve by 2025 in a reset of inflation expectations. That dented bullion's appeal because the metal pays no interest. Bullion remains nearly a quarter higher this year, although the easing of US-China tensions has given traders a clear indication that President Donald Trump's administration is taking a more dovish approach to the clash. Still, some investors remain wary about the lack of detail in their announcements, and further volatility could push bullion back toward a record set last month.

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Spot gold was steady at $3,237.86 an ounce at 7:38 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, after rising 1% on Monday. Silver, palladium and platinum were little changed. (Newsmaker23)

Source: Bloomberg