Gold Regains Ground Following Yesterday's Nosedive

(RTTNews) - Following the nosedive seen in the previous session, the price of gold regained some ground during trading on Tuesday.

Gold for May delivery climbed $20.30 or 0.6 percent to $3,240.30 an ounce after plunging $115.40 or 3.5 percent to $3,220 an ounce during Monday's session.

The rebound by gold futures came as traders picked up the precious metal at reduced levels following yesterday's slump, which came amid news of a U.S.-China trade deal.

The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff.

The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.

Gold futures also benefitted from a pullback by the value of the U.S. dollar, with the U.S. dollar index falling by 0.7 percent after jumping by 1.5 percent to its best levels in a month on Monday.

In U.S. economic news, the Labor Department released a report showing consumer prices in the U.S. rose by slightly less than expected in the month of April.

The Labor Department said its consumer price index inched up by 0.2 percent in April after edging down by 0.1 percent in March. Economists had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, core consumer prices also rose by 0.2 percent in April after creeping up by 0.1 percent in March. Core consumer prices were also expected to climb by 0.3 percent.

The report also said the annual rate of growth by consumer prices slowed to 2.3 percent in April from 2.4 percent in March, while the annual rate of growth by core consumer prices was unchanged at 2.8 percent.