The yellow metal market continued its downward trend and plunged more than 2% on Monday as investors sought safe haven assets such as the US dollar supported by aggressive US trade policies.
At 9.10 am, gold prices were at $2,999.72, recovering 0.52% since it opened early Tuesday in Asian trading.
The US dollar hit a six-month low last week after President Donald Trump launched retaliatory tariffs.
However, China responded by imposing a 34% duty on all US imports, triggering turmoil in financial markets with most global equity indices recording losses.
The yellow metal was affected by rising US Treasury yields with the 10-year note rising to 4.147% and the US Dollar Index (DXY) which tracks the performance of the USD rose 0.39% to 103.29 points.
This week, US economic data will feature the Federal Open Market Committee (FOMC) meeting minutes report early Thursday morning followed by the release of consumer and producer inflation data.
