Yen backs off seven-month high as global markets rebound

Gold prices lost ground on Tuesday as the dollar rallied against most major rivals, with the precious metal losing its haven appeal as concerns about the trade war calmed down.

The White House said nearly 18 countries already presented proposals for trade deals with the US.

White House Spokeswoman Caroline Levett said that work is being done to reach a trade deal with China despite there not being direct talks between Presidents Trump and Jinping.

US Treasury Secretary Scott Bessent said the trade war with China is currently unsustainable, expecting the situation to settle down soon.

The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.

The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.

The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.

The IMF cut US GDP growth forecast for 2025 from 2.7% to 1.8%, but still put a 40% chance of a US recession this year.

Otherwise, the dollar index rose 0.6% as of 18:33 GMT to 98.8, with a session-high at 98.8, and a low at 98.01.

On trading, gold spot prices fell 0.7% as of 18:34 GMT to $3401.4 an ounce.