Online Reporter
Gold steadied after reversing losses in the previous session when President Donald Trump began informing a suite of nations of their latest tariff rates, with concerns about a growing US-led trade war bolstering haven demand.
The precious metal ended Monday little changed after earlier falling as much as 1,2 percent, and on Tuesday remained flat at around US$3 335 an ounce.
The president said Japan and South Korea would face 25 percent levies on goods, with other rates issued for different trading partners, triggering a selloff in currencies of targeted nations and boosting the dollar.
A stronger greenback typically makes gold more expensive for most buyers.
The Asian nations were the first in what the president promised would be a flurry of unilateral warnings and trade deals announced on Monday, with investors bracing for further potential fallout as the White House prepares to impose higher tariffs on countries that do not reach agreements with the US.
Still, Trump’s move to delay the new rates until August 1 effectively buys each affected nation an extra three weeks to cut a deal.
Trump’s efforts to overhaul trade policies has served as a steady source of uncertainty for markets amid fears about the impact widespread US tariffs may have on the global economy.
That’s seen investors flock to safe assets such as bullion, which has rallied by more than a quarter this year and is trading about US$160 shy of a record-high set in April.
Heightened geopolitical tensions have also underscored the metal’s haven appeal.
Spot gold was steady at US$3 337,30 an ounce as of 7:15 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0,1 percent, after gaining 0.5 percent on Monday. Silver and palladium were little changed, while platinum dipped. — Bloomberg
Peter Tanyanyiwa