Gold steadied following a modest drop on Monday after President Donald Trump said he was open to more tariff negotiations with major economies including the European Union.
Bullion was near $3,347 an ounce after dropping 0.4% in the previous session. Trump's apparent willingness to extend trade talks eased haven demand, although it appeared at odds with his insistence that letters to governments setting tariff rates are “the deals” for trade partners.
The precious metal has surged by more than a quarter this year, hitting a record above $3,500 an ounce in April, as the US's aggressive and erratic trade policy enhanced its appeal as a store of value in uncertain times. However, the rally has stalled over the last three months as investors wait for more clarity on the eventual contours of the new trade system, and on signs they're hesitant to buy gold at such elevated levels.
“If trade talks deteriorate before August, we could easily see bullion retest or even breach its former highs,” said Fawad Razaqzada, a market analyst at City Index. “For now, the market seems firmly in wait-and-see mode, keeping the gold forecast leaning cautiously bullish.”
Gold rose 0.1% to $3,347.11 an ounce as of 8:26 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0.1% after rising 0.3% on Monday. Silver edged higher, after hitting a 14-year-high in the previous session before closing lower. Palladium climbed, while platinum was flat.
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