Gold Prices Climb Amid Renewed Investor Interest Following Easing of US-China Tensions

Gold prices staged a rebound on Tuesday as investor demand returned, spurred by attractive valuations and a temporary tariff ceasefire between the United States and China. The development slightly reduced the demand for gold as a traditional safe-haven asset, yet value-buyers appeared keen to take advantage of the dip.

Gold futures rose by nearly 1% in early trading to reach $3,261.40 per ounce, while spot gold ticked up by 0.6% to around $3,255.44. This follows a sharp pullback on Monday after Washington and Beijing announced a 90-day reduction in mutual import tariffs—an unexpected move after months of trade strain.

US Treasury Secretary Scott Bessent confirmed over the weekend that both nations had agreed to a 115% tariff cut during negotiations held in Switzerland. The deal temporarily alleviated market fears around escalating trade conflict, prompting some investors to shift funds back into equities.

Despite the reduced geopolitical risk, some analysts believe there is still room for bullish momentum in gold. Tim Waterer, chief market analyst at KCM Trade, commented that “value-buying at current levels is supporting gold, even as global economic prospects brighten with reduced trade hostility.” He also noted that a softer US dollar was contributing to gold’s mild recovery.

For readers tracking commodity prices, keep up to date with our latest gold market insights and download our free eBook on gold trading strategies.

Sterling Strengthens Against the Dollar Amid Weakening Greenback

The pound made modest gains on Tuesday morning, rising 0.3% against the US dollar to trade at $1.3208. The rally came as the US dollar index dipped to 101.53, reflecting a slightly dampened optimism surrounding the US-China deal.

Meanwhile, UK labour market data from the Office for National Statistics (ONS) signalled early signs of softening. Wages grew at a slower pace in the three months to March, unemployment edged up, and the number of job vacancies declined, hinting at a potential cooling in employment momentum.

Neil Wilson of Saxo Bank suggested that these cracks in the jobs market may lead the Bank of England to adopt a more dovish monetary policy approach. “Inflation is no longer the central issue. The BoE should act swiftly with cuts,” he remarked.

Additionally, retail data from the British Retail Consortium showed a strong 7% year-on-year growth in UK sales—bolstered by an early Easter and favourable weather. However, a combined analysis of March and April suggested only modest overall growth of 0.2%.

The pound also saw gains against the euro, rising 0.2% to €1.1887. For more in-depth currency coverage, explore our latest Forex analysis articles.

Oil Prices Hold Steady as Trade Optimism Meets Supply Concerns

Oil markets remained flat on Tuesday morning as investors evaluated the broader implications of trade negotiations and supply dynamics. Brent crude hovered near $64.93 per barrel, while West Texas Intermediate edged slightly lower to $61.80.

Market analyst Derren Nathan remarked that recent optimism around global trade wasn’t sufficient to maintain bullish pressure on crude oil prices. OPEC+ has indicated potential production increases for the coming months, and the possibility of lighter sanctions on oil-exporting nations such as Iran and Russia is also weighing on investor sentiment.

Keep track of the latest oil market developments here on Traders Oracle.

FTSE 100 Holds Steady

The FTSE 100 remained subdued in early Tuesday trading, sitting at 8,605 points. Investors continue to monitor economic data and central bank signals for clues on market direction.

For ongoing updates, visit our UK markets live page.

Final Thoughts

With global markets reacting to political agreements and macroeconomic shifts, it’s never been more important to understand how to trade with confidence. If you’re interested in learning more about how to capitalise on these movements, we highly recommend our friends over at Trendsignal. They’ve been helping traders succeed since 2003 and host regular free trading workshops designed to teach you how to identify entry and exit points with their award-winning systems.

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