Gold prices remained steady on Tuesday following a 3% decline in the previous session, supported by increased safe-haven demand following President-elect Donald Trump’s promise to impose tariffs on all imports from Canada, Mexico and China.
Spot gold was steady at $2,625.48 an ounce, at 0259 GMT, after hitting its lowest level since November 18 earlier in the session.
U.S. gold futures rose 0.3% to $2,625.80.
“Despite yesterday’s extended sell-off, gold is holding up relatively well, suggesting some safe-haven demand, said Matt Simpson, senior analyst at City Index, adding that we could see more turbulence in the future, especially with Trump back in the crosshairs.
Trump has promised to impose high tariffs on Canada, Mexico and China, risking trade wars.
Gold has traditionally been viewed as a safe haven during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.
Separately, Minneapolis Federal Reserve Bank President Neel Kashkari, who is generally at the hawkish end of the U.S. central bank’s policy spectrum, said he was open to further cuts in rate next month.
According to CME Group’s FedWatch tool, markets currently estimate a 55.9% chance of a 25 basis point interest rate cut from the US Federal Reserve in December.
Traders will closely watch U.S. consumer confidence data and minutes from the Fed’s November meeting later today, as well as the first revision of GDP and core PCE index numbers which should be released later this week.
“I expect gold to move in a tight range in the near term, with a slight upward trend,” Simpson added.
On the geopolitical front, US President Joe Biden and French President Emmanuel Macron are expected to announce a ceasefire in Lebanon between Hezbollah and Israel, according to four senior Lebanese sources.
Spot silver was flat at $30.29 an ounce, platinum lost 0.2% to $937.05 and palladium rose 0.3% to $975.65.
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