Gold prices remained stable in Asian trading on Tuesday after the substantial losses from the previous day caused by the easing of U.S.-China tariffs. Market participants are balancing optimism regarding the reduction in trade tensions against the anticipation of critical U.S. inflation data.

The State of Gold Prices

• Spot Gold: Steady at $3,236.95 per ounce

• June Futures: Increased by 0.4% to $3,240.42 per ounce as of 00:26 ET (04:45 GMT)

Investors can keep track of live bullion prices and futures using the Commodities API, which provides real-time spot and futures quotes for gold and other precious metals.

Trade Deal’s Influence on Gold Demand

The recent tariff agreement reduced U.S. tariffs on China to 30% and China’s tariffs on U.S. imports to 10%. This truce drove equity markets higher (S&P +3.3%, Nasdaq +4.4%). As investor confidence improves, demand for gold as a safe-haven asset has diminished, leading to the recent pullback.

Dollar Strength Restraining Gold Gains

Optimism surrounding trade has also strengthened the U.S. dollar against other major currencies, consequently reducing gold’s attractiveness. A stronger dollar raises costs for international buyers, which in turn limits recovery potential for gold.

Upcoming U.S. CPI Data in Focus

Traders are closely watching the upcoming April Consumer Price Index report, scheduled for release on Wednesday. Should the readings reflect heightened inflation, the dollar may strengthen further, continuing to place downward pressure on gold prices. Conversely, weaker results could revive gold as a safe-haven option.

Other Precious Metals in Review

• Silver Futures: Increased by 1.7% to $33.16 per ounce after a notable decline.

• Platinum Futures: Rose by 0.5% to $982.65 per ounce

Similar to gold, these precious metals have experienced downward pressure due to the transition back toward equities and dollar strength, although they remain poised for recovery in the case of renewed interest from safe-haven investors.

Looking Ahead:

1. Inflation Surprise Risk: A higher CPI reading may solidify dollar strength, continuing to restrict gains in gold.

2. Further Trade Developments: Monitoring any extensions beyond the 90-day truce could influence gold pricing positively.

3. Dollar Index Trends: Ongoing strength of the greenback will cap any potential rallies in precious metals.

By leveraging real-time price data from the Commodities API and inflation event notifications through the Economics Calendar API, investors can adeptly navigate the current upheaval surrounding gold prices.