WASHINGTON (dpa-AFX) - Gold prices recovered some ground on Tuesday after hitting a more than one-week low in the previous session.
Spot gold rose 0.6 percent to $3,253.98 per ounce in early European trade, while U.S. gold futures were up 1 percent at $3,258.65.
After the U.S.-China tariff truce, Chinese leader Xi Jinping said 'bullying' and 'hegemonism' will only backfire and there are no winners in tariff wars or trade wars.
Elsewhere, U.S. President Trump said the U.S. has the upper hand in its trade discussions with the European Union.
'The European Union is in many ways nastier than China. We've just started with them. We have all the cards. They treated us very unfairly,' Trump said at the White House.
Ratings agency Fitch said that the U.S. effective tariff rate is now reduced to 13.1 percent from 22.8 percent prior to the agreement but still at levels unseen since 1941 and much higher than the 2.3 percent it was at the end of 2024.
Global free trade is in crisis, the head of the World Trade Organization chief said while meeting Japanese Prime Minister Shigaru Ishiba earlier today.
The dollar held gains ahead of closely monitored U.S. inflation data due later in the day.
The report may show headline and core CPI remained sticky in April and unchanged from the prior month, threatening interest-rate cuts.
Austan D. Goolsbee, president of the Chicago Fed, said there was still a risk of higher consumer prices and slower growth amid elevated uncertainty about the White House's trade policy, according to the New York Times.
Fed Governor Adriana Kugler said the Trump administration's tariff policies are likely to boost inflation and weigh on economic growth, even with the recently announced reduction in levies on China.
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