By Daksh Grover
(Reuters) – Gold prices held steady on Tuesday after dropping more than 3% in the previous session, with some support coming from President-elect Donald Trump’s proposed tariffs on all imports from Canada, Mexico, and China.
Spot gold held its ground at $2,624.41 per ounce, as of 0614 GMT, recouping some losses from earlier in the session when prices hit their lowest since Nov. 18.
U.S. gold futures edged 0.2% higher to $2,624.70.
“Despite the extended sell-off yesterday, gold is holding up relatively well, which suggests some safe-haven demand,” Matt Simpson, a senior analyst at City Index said, adding “we could see more turbulence ahead, especially with Trump back in focus.”
Trump vowed hefty tariffs on Canada, Mexico, and China — risking trade wars.
Gold is traditionally considered a safe-haven investment during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.
Meanwhile, Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the U.S. central bank’s policy spectrum, said he is open to cutting rates again next month.
According to the CME Group’s FedWatch Tool, markets currently estimate a 55.9% chance of a 25-basis-point U.S. Federal Reserve rate cut in December.
Traders will keep a close eye on U.S. consumer confidence data and the minutes from the Fed’s November meeting later today, as well as the first revision of GDP and core PCE figures are set to be released later this week.
“I expect gold to trade in a narrow range in the short term, with a slight upward drift,” Simpson added.
On the geopolitical front, U.S. President Joe Biden and French President Emmanuel Macron are set to announce a ceasefire in Lebanon between Hezbollah and Israel, according to four senior Lebanese sources.
Spot silver was steady at $30.31 per ounce, platinum edged 0.1% lower to $937.55 and palladium was steady at $973.36.
(Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
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