Gold prices held steady above $2,740 an ounce on Tuesday as traders balanced concerns over President Donald Trump’s tariff threats and the fallout from a global technology stock rout.
The latest turbulence comes after Trump announced plans to impose tariffs on steel, aluminum, and copper imports, though he did not provide details on the magnitude.
According to the Financial Times, Treasury Secretary Scott Bessent is advocating for a universal tariff starting at 2.5% with gradual increases. However, Trump stated he favors “much bigger” across-the-board levies, adding to uncertainty in financial markets.
The dollar gained for a second day as the greenback rose by 0.4% to limit haven demand for gold.
“A lot of this depends on how much uncertainty these tariffs inject into global trade,” said Manav Modi, an analyst at Motilal Oswal Financial Services Ltd.
Meanwhile, a $1 trillion wipeout in the Nasdaq, spurred by fears of valuation challenges due to a Chinese AI startup, DeepSeek, has led to a selloff in equities.
Traders sold gold on Monday to cover losses in the stock market, driving the metal lower.
Traders are now focused on the Federal Reserve’s first interest-rate decision of the year scheduled for Wednesday.
While policymakers are expected to leave rates unchanged, markets are keenly interested in the Fed’s outlook on inflation and economic growth amid Trump’s evolving trade policies.
Spot gold was little changed at $2,743.03 an ounce as of 9:25 a.m. in London. Silver and platinum posted declines, while palladium edged higher.
