Gold Rebounds as Dollar Softens, Trade Sentiment Wavers

Gold prices edged higher on Tuesday as the US dollar weakened slightly, reversing some of its earlier gains. The initial optimism surrounding a trade truce between the United States and China faded, prompting investors to turn back to safe-haven assets.  

Market Trends and Key Drivers:  
- Spot gold rose 0.6 percent to $3,254.39 per ounce, while US gold futures climbed 1 percent to $3,258.70.  
- The dollar index slipped 0.2 percent after a sharp rise in the previous session, making gold more attractive for holders of other currencies.  
- Investors are closely watching the upcoming US Consumer Price Index report, which could influence the Federal Reserve’s monetary policy stance.  
- Analysts suggest that if inflation data comes in lower than expected, it could weaken the dollar further, providing additional support for gold prices.  
- Broader market sentiment remains cautious, with traders assessing the long-term impact of tariff reductions between the US and China.  

Sources:  
MarketScreener, Reuters, Economic Times, Investing.com India.

 

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