02:00 PM EDT, 04/08/2025 (MT Newswires) -- (Updates prices.)

Gold prices rose mid-afternoon on Tuesday on a weaker dollar after three days of losses amid market turmoil that pushed the price of the metal down 6% from its April 2 record high.

Gold for June delivery was last seen up US$16.20 to US$2,989.80 per ounce.

Global commodity and equity markets moved sharply lower following the April 2 introduction of stiff tariffs on imports from nearly all U.S. trading partners by President Donald Trump that is sparking a global trade war as China, the European Union, Canada and others impose retaliatory tariffs on U.S. imports. However markets are calming on Tuesday..

The sell-off for gold came as investors looked to raise liquidity and take profits from the metal's record price, but the prospect trade wars will lead to recessions and higher inflation may support gold as a store of value.

"The combination of heightened global economic tensions, the risk of stagflation, a weaker dollar combined with falling US real yields as inflation expectations rise, will in our opinion continue to support bullion," Ole Hansen, head of commodity strategy at Saxo Bank, noted.

The dollar was lower, bullish for commodities priced in the currency. The ICE dollar index was last seen down 0.2 points to 103.06. Treasury yields were mixed, with the U.S. two-year note last seen paying 3.744%, down 2.5 basis points, while the yield on the 10-year note was up 6.1 points to 4.238%.