Gold prices rose on Tuesday on bargain-hunting after a sharp loss in the previous day, while softer-than-expected inflation data from the US also lent support, reports Reuters.
Spot gold rose 0.2 per cent to $3,241.16 an ounce as of 0938 ET (13:38 GMT), after falling as low as $3,207.30 on Monday. US gold futures were up 0.6 per cent at $3,245.50.
"We had a big correction in gold on Monday on the news that there is a deal made between the US and China," Bart Melek, head of commodity strategies at TD Securities, said.
"However, tariffs (on China) are still 30 per cent, which is quite negative for the economy."
The US and China on Monday said they would pause their tariffs for 90 days. Following the talks in Geneva over the weekend, the US said it will cut tariffs on Chinese imports to 30 per cent from 145 per cent while China said it would cut duties on US imports to 10 per cent from 125 per cent.
Bullion had shattered multiple record highs in 2025, owing to concerns over economic slowdown following US President Donald Trump's sweeping tariffs, strong central bank buying, geopolitical tensions and increased flow into gold-backed exchange-traded funds.
Elsewhere, US consumer price index increased 0.2 per cent last month, the Labor Department's Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast the CPI would rise 0.3 per cent.
"The report does lean slightly friendly for the precious metals markets because it's not a problematic inflation report that would give the Federal Reserve pause on cutting interest rates," Jim Wyckoff, senior analyst at Kitco Metals, wrote in a note.
Financial markets expect the central bank to resume its policy easing in September.
Lower interest rates increase non-yielding bullion's appeal.
Spot silver added 0.1 per cent to $32.62 an ounce, platinum climbed 1.4 per cent to $989.95 and palladium gained 0.2 per cent to $947.24.
