Gold prices saw a decrease on Tuesday as a result of a stronger US dollar and the ongoing trade talks between the US and China in London. Spot gold fell 0.6% to $1,307.72 an ounce, while US gold futures slipped 0.8% to $1,327.50. The dollar index went up by 0.3%, making gold more expensive for holders of other currencies.
The trade talks between the two largest global economies cover various issues including tariffs and restrictions on rare earth metals. Market analysts are closely watching for any progress in the negotiations between the US and China. US President Donald Trump mentioned that the negotiations were going well.
Both sides had previously agreed to a temporary halt in imposing tariffs on each other, which provided some relief to financial markets. Recent data from China indicated a slowdown in export growth due to US tariffs, as well as a deepening factory-gate deflation. Investors are waiting for US inflation data on Wednesday to get more insight into the Federal Reserve’s monetary policy direction.
Gold is often favored during times of economic and geopolitical uncertainty, especially when interest rates are low. In other precious metals, spot silver and platinum experienced declines, while palladium saw a slight increase in price.