Gold prices (XAU/USD) are facing pressure for the second straight day, trading around $2,735 at the time of writing on Tuesday (1/28), following a more than 1% drop the previous day after Chinese AI startup DeepSeek rocked the market. The results were not small, with over $550 billion in market capitalization wiped out for Nvidia alone. Given the sensitivity of technology, cryptocurrencies such as Bitcoin also suffered, with Bitcoin (BTC) losing over 6.5% at one point among the victims of spillover in the financial market asset class.

This has benefited US President Donald Trump, who has again called for global tariffs. His belief is that doing so would better protect US tech companies and shield them from China's dumping strategy. The rule of thumb remains that tariffs are inflationary, which means higher yields, which is a headwind for Bullion. (AL)

Source: Fxstreet