Gold steadied after a sharp selloff as a major de-escalation in US-China trade tensions hurt demand for havens.
Bullion traded near $3,240 an ounce — after losing 2.7 per cent on Monday — with investors betting on a recovery in stocks and riskier assets. The world’s biggest economies agreed to temporarily lower tariffs, with the US slashing duties on Chinese products to 30 per cent from 145 per cent for a 90-day period, while Beijing dropped its levy on most goods to 10 per cent.
The US dollar rose the most since a post-election rally in November, while Treasury yields climbed — both acting as headwinds for gold. Traders now see just two rate cuts from the Federal Reserve in 2025 in a reset of inflation expectations. That reduces bullion’s appeal as the metal pays no interest.
Gold remains almost a quarter higher this year, although the easing of US-China tensions has given traders a clear indication President Donald Trump’s administration is taking a softer. Still, some investors remain wary about the lack of detail in their announcement, and another flare-up could propel bullion back toward the record set last month.
“The devil is in the details during negotiations,” said Christopher Wong, a strategist from Oversea-Chinese Banking Corp. “Some degree of caution remains warranted, as we see consolidation in the range of $3,150 to $3,350 an ounce.”
Spot gold was steady at $3,239.66 an ounce at 12:31 p.m. in Singapore. The Bloomberg Dollar Spot Index eased, after rising 1 per cent on Monday. Silver and platinum rose, while palladium was little changed.
More stories like this are available on bloomberg.com
Published on May 13, 2025
