Gold extended its decline for a third straight day amid improving market sentiment on news of reciprocal tariffs by US trading partners.
At 8.40am, gold prices were at 3,011.70, down slightly from when they opened early Tuesday in Asian trading.
US stock markets were trading in a positive mood on rising US Treasury yields and a broad-based strengthening of the US dollar.
A Bloomberg report showed the US presidential administration targeting tariffs on certain countries on April 2, which contradicts the reciprocity of most of the so-called ‘Dirty 15’ trading partners.
According to last year’s data, The Wall Street Journal reported that the US recorded its largest trade deficit in goods with China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia and South Africa.
Additionally, Atlanta Fed President Raphael Bostic recently stated that he supports only one rate cut this year and expects inflation not to return to target until around 2027.
He also added that inflation is expected to remain volatile and stressed that the Fed is not lagging behind in managing economic conditions.
