Gold Bounces Back as Dollar Weakens, Despite US-China Tariff Truce

Gold prices rebounded on Tuesday, rising 0.6% to $3,255.09 an ounce after falling more than 2% the previous day. The recovery was driven by a 0.2% drop in the dollar index, making gold cheaper for holders of other currencies.

According to analyst Carlo Alberto De Casa, ongoing uncertainty about trade tariffs and a pause in the stock market rally contributed to gold’s recovery.

On Monday, the US and China announced a three-month tariff reduction agreement, with US tariffs on Chinese goods decreasing from 145% to 30% and Chinese duties falling from 125% to 10%. This temporary truce followed last month’s trade war escalation.