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Gold prices pare gains, fall below $3,000 again
Gold prices pared gains after rising above $3,000 per ounce during trading on Tuesday, April 8, as US Treasury yields rose, despite a weaker dollar and escalating trade tensions between the United States and China.
Spot gold prices rose 0.26% to $2,990.41 per ounce at 6:31 PM GMT, after rising 0.8% to $3,007.69 earlier in the session.
This comes after gold prices fell to their lowest levels in more than three weeks during trading on Monday, down from an all-time high of $3,167.57 reached the previous week.
US gold futures rose 0.5% to settle at $2,990.20, according to Reuters.
Benchmark 10-year US Treasury yields rose to a one-week high, reducing the appeal of non-yielding gold.
"Despite gold's decline for three consecutive sessions, the yellow metal's appeal remains strong amid rising trade tensions and the prospect of a US interest rate cut," said Lukeman Otunuga, senior research analyst at FXTM.
Otunuga added: "A break above $3,055 per ounce could open the way for a return to $3,100 and $3,130. A sustained decline below $3,000 could push gold back towards $2,950 and $2,930."
Fears of a global trade war have escalated since US President Donald Trump announced retaliatory tariffs on April 2, raising concerns that the US economy is headed for recession and pushing investors towards safe havens such as gold.
A White House official said Tuesday that the United States will impose a 104% tariff on China starting at 12:01 a.m. Eastern Time on Wednesday, after Beijing failed to lift its retaliatory tariffs on U.S. goods by Trump's Tuesday noon deadline.
