Gold plunged more than 1% in Tuesday trading as safe-haven demand waned, even as President Donald Trump announced that the first tariff letters had been sent to several US trading partners.
At 9.15am, gold prices were at 3,303.18, unchanged since opening early in Asian trading on Wednesday.
In addition, a recovering US dollar and rising US Treasury yields put downward pressure on the precious metal.
Market sentiment improved, with major US equity indexes posting encouraging reports and Trump imposing tariffs of around 25% to 40% on 14 countries starting on August 1.
Policymakers from Japan and South Korea said they would try to negotiate with the US, seeking a reduction in levies.
A rise in US Treasury yields weighed on gold prices, as investors looked for a Fed rate cut. Data from the Chicago Board of Trade revealed the market is forecasting a 48 basis point cut through 2025.
For now, market participants will be looking ahead to the minutes of the Fed meeting early Thursday morning and the release of Initial Jobless Claims for last week.
