Gold prices rose on Tuesday as the dollar index fell against most major rivals, with the precious metal attempting to recover some of yesterday’s 3.5% losses.
Earlier data showed US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.
US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.
US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March’s 0.1% contraction.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
In addition, Trump also reduced tariffs on small Chinese packages, worth less than $800, from 120% to 54%.
Otherwise, the dollar index fell 0.8% as of 20:23 GMT to 101, with a session-high at 101.7, and a low at 100.9.
On trading, gold spot prices rose 0.8% as of 20:25 GMT to $3254.6 an ounce.
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