Pedro Goncalves writes:
Gold prices rose on Tuesday morning, seeing some relief from weakness in the dollar amid the trade tariff confusion.
The spot price advanced 0.1% to $2,640.78 per ounce, while gold futures climbed 0.3% to $2,654.90 per ounce.
Gold prices had come under pressure from a stronger dollar, given that the precious metal is typically priced in the US currency.
However, investors tend to look towards safe haven investments, such as gold, in times of geopolitical and economic uncertainty.
According to Reuters, IG market strategist Yeap Jun Rong said: “Gold prices have managed to stabilise amid some cooling off in the US dollar overnight, but higher US Treasury yields may remain a key overhang for further gains.”
While gold and bonds are both safe haven assets, the precious metal is less appealing to investors as a non-yielding asset if interest rates remain higher.