Spot Gold held in proximity to a fresh 1-month high of $3,392.30 per troy ounce on Tuesday, as escalating trade and geopolitical tensions kept safe-haven assets underpinned.
US President Donald Trump threatened to double existing tariffs on imports of steel and aluminum from 25% to 50%, taking effect on June 4th, reigniting tensions with trade partners.
Tariff-related tensions also intensified due to China’s dismissal of Trump’s claims that it had violated a trade agreement signed in Geneva the previous month. US President Trump and Chinese President Xi Jinping are likely to speak later this week, as confirmed by the White House.
The Trump has also issued a call for expedited trade negotiations. Countries now have until Wednesday to present their strongest proposals.
A draft letter originating from the Office of the US Trade Representative (USTR) asks countries actively involved in talks to submit detailed proposals for tariffs and quotas on US industrial and agricultural goods, plus plans to adjust non-tariff barriers.
On the geopolitical front, Russia and Ukraine held their second round of direct peace talks on Monday, but made almost no progress toward putting an end to the conflict.
Spot Gold was last down 0.53% on the day to trade at $3,363.92 per troy ounce.
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