Gold dropped in early trading on Tuesday as it opened on a notable decline by 1%, amid the ease in trade tensions between the United States and China, which resulted reducing demand for gold as a safe-haven asset. It is worth noting the price of gold dropped to $3,300 per ounce after hitting its all-time high of $3,500.

In addition, China is considering exempting certain U.S. imports from its 125% tariffs and has requested companies to identify goods that may qualify for these exemptions. This move is part of Beijing’s efforts to ease trade tensions and stimulate domestic economic activity.

most important market developments: –

1: Easing Impact of Tariffs on Cars:

Trump administration will take steps to reduce the impact of its automotive tariffs by easing some duties on foreign parts used in U.S. made cars and prevent additional tariffs from being added to those on imported vehicles, according to officials.

2: New trade agreements to avoid tariffs:

U.S. Treasury Secretary Scott Pison mentioned that many major trading partners have made “very good” proposals to avoid U.S. tariffs, with India likely being one of the first agreements to be signed.

Speaking to reporters after two early morning television interviews, Bessent said the first such trade agreement might come this week or next, but gave no further details.