Gold prices moved lower on Tuesday, trimming some of the previous day’s gains as U.S. stock futures pointed to a recovery on Wall Street following Monday’s selloff, dampening safe-haven demand for bullion.
Prices had rallied 1.44% in the previous session as investor sentiment was hit by a selloff in tech shares that sent Wall Street tumbling and resurgent worries over a trade war. Investors tend to seek out gold as a store of value during times of political or economic uncertainty.
Tech shares have been hit in recent weeks amid concerns over Facebook’s use of data, and uncertainty over the possible regulation of Amazon.
U.S. stock futures regained poise on Wednesday, pointing to gains at the open on Wall Street, despite losses in Europe and in Asia overnight.
Investors remained cautious after China imposed extra tariffs on certain U.S. imports, escalating a trade dispute between the world’s two largest economies and stoking concerns about the impact on global growth.
The Trump administration is expected later this week to publish a list of Chinese goods that could be subjected to new U.S. tariffs.
In other precious metal trade, silver futures were down 0.79% to $16.540 a troy ounce, while platinum futures edged up 0.09% to $937.30.
Among base metals, copper futures were up 0.36% to $3.061 a pound.