(Bloomberg) — Gold was little modified — following a steep drop on Monday — as traders weighed President Donald Trump’s latest tariff threats, while a cloud lingered over stock markets because of a world technology rout.
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Bullion traded just above $2,740 an oz. after Trump said he’d impose tariffs on steel, aluminum and copper imports, without giving details on the magnitude. The Financial Times reported that Treasury Secretary Scott Bessent is pushing for universal tariffs on US imports to begin at 2.5% and rise progressively, citing unnamed sources.
Trump subsequently said that he wants across-the-board levies which can be “much larger” than that. The dollar gained, limiting any haven demand upside for gold.
Traders were also monitoring the fallout from Wall Street amid mounting concerns that an inexpensive artificial intelligence model from Chinese startup DeepSeek could make valuations within the sector tough to justify. Bullion tumbled 1.1% on Monday as traders sold the valuable metal to cover losses in equities, including almost $1 trillion wiped from the Nasdaq.
Gold set a series of records in 2024, with gains driven by the Federal Reserve’s pivot to looser monetary policy, heightened geopolitical tensions, and central-bank buying. The metal may get an additional boost this yr from any further rate cuts, and a possible increase in haven demand as Trump injects uncertainty into financial markets. The Fed makes its first interest-rate decision of the yr within the US on Wednesday.
Fed policymakers are expected to depart rates unchanged, however the market might be involved in the bank’s views on growth and inflation given Trump’s policies, said Manav Modi, an analyst at Motilal Oswal Financial Services Ltd.
Spot gold was little modified at $2,743.03 an oz. at 9:25 a.m. in London, about $50 shy of a record high. The Bloomberg Dollar Spot Index rose for a second day, climbing 0.4%. Silver and platinum fell, palladium edged higher.
–With assistance from Jack Ryan.
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