Gold prices and trade uncertainty, gold prices dropped slightly on Tuesday after reaching a near four-week high earlier in the day. The modest rise in the U.S. dollar pressured gold prices, though trade tensions between the U.S. and China kept investors cautious and limited the metal’s decline.
Spot gold fell by 0.5% to $3,362.57 per ounce after touching its highest level since early May. U.S. gold futures also slipped, dropping 0.3% to $3,386.60 per ounce. Even so, gold had surged 2.7% in the previous session, marking its best daily performance in over three weeks.
Analysts pointed out a clear connection between the U.S. dollar and gold. As the dollar recovered from a six-week low, gold prices slipped. Brian Lan, managing director at GoldSilver Central in Singapore, said gold’s price is moving inversely with the dollar at this stage. That means when the dollar rises, gold usually dips, and vice versa.
Despite the drop, the gold prices and trade uncertainty story remains active. Many investors are still watching global trade talks, especially those between the U.S. and China. While some investors reduced their gold positions, the decline was small compared to past reactions during easing tensions.
Trade-related risks continue to shape investor sentiment. The White House confirmed that U.S. President Donald Trump and China’s President Xi Jinping may speak later this week. This comes just days after Trump accused China of failing to keep promises about rolling back tariffs.
The U.S. plans to double tariffs on imported steel and aluminum to 50%. This change aligns with a deadline for countries to submit improved offers in trade negotiations. Meanwhile, the European Commission has prepared to argue for reduced or eliminated U.S. tariffs. Officials from Europe hope to push back against the planned increases.
These ongoing tensions are keeping traders alert. Even as gold dropped slightly, it still acts as a hedge against economic uncertainty. With no resolution in sight, gold may continue to attract cautious investors.
Other metals also moved on Tuesday. Spot silver lost 1.9%, falling to $34.12 per ounce. Platinum inched up by 0.1% to $1,064.66, while palladium dipped 0.1% to $986.10.
The current gold prices and trade uncertainty theme shows that markets remain sensitive. Investors weigh each new update, adjusting strategies based on dollar strength and political risks. Any sudden shift in trade negotiations could once again swing gold prices in either direction.