BY ANMOL CHOUBEY
Gold recovered on Tuesday on bargain-hunting after prices dropped to a more than one-week low in the previous session as a temporary US-China truce in reciprocal tariffs lifted appetite for riskier assets and dented bullion’s safe-haven appeal.
Spot gold rose 0.5 percent to $3,250.50 an ounce. Bullion recorded a 2.7 percent decline in the previous session.
US gold futures were up 0.9 percent to $3,255.30.
After two days of negotiations in Geneva, US and China announced tariff reductions for the next three months, with US tariffs on Chinese imports dropping from 145 percent to 30 percent and Chinese duties on US imports falling to 10 percent from 125 percent, leading to a surge in global shares.
The US and China had imposed tit-for-tat tariffs on each other last month, triggering a trade war.
“There is some value-buying happening on gold at current levels which is helping to prop up the price, despite the generally better outlook for global growth with the US and China on better terms,” said KCM Trade Chief Market Analyst Tim Waterer.
“The consolidation move in the dollar has allowed the gold price to make a mild push higher.”
Federal Reserve Governor Adriana Kugler said the pause on import levies reduces chances that the US central bank will need to lower interest rates in response to an economic slowdown.
