BENGALURU- Gold edged down on Tuesday after US President Donald Trump stated that not all of his proposed tariffs would take effect on April 2, boosting risk sentiment, while a Federal Reserve official signaled a cautious stance on rate cuts this year.
Spot gold was down 0.1 percent at $3,010.64 an ounce. US gold futures were steady at $3,015.00.
“Gold prices have seen some pullback recently, as improved risk appetite and softer US tariff rhetoric prompted some profit-taking in the safe-haven asset following its recent outperformance,” said IG market strategist Yeap Jun Rong.
Trump said on Monday automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.
“However, the downside appears limited, as uncertainty remains over the extent and scope of upcoming US reciprocal tariffs…gold continues to find some support as a hedge against potential surprises,” Rong added.
Elsewhere, Atlanta Federal Reserve President Raphael Bostic said on Monday he anticipates slower progress on inflation in the coming months and, as a result, now sees the Fed cutting its benchmark rate only a quarter of a percentage point by this year-end.
