XAU/USD Gains 0.8% to $2,045 on Easing US-China Trade Tensions

Gold prices surged 0.8% to $2,045 per ounce during Tuesday's session, finding support from improving US-China trade relations and a softer US dollar. The DXY index retreated 0.3% to 104.20 as risk appetite improved following reports of constructive dialogue between Washington and Beijing officials. Market participants are scaling back safe-haven dollar positions, benefiting gold despite rising Treasury yields. The precious metal has broken above the key $2,040 resistance level, with momentum indicators suggesting further upside potential. EUR/USD and GBP/USD also benefited from dollar weakness, advancing 0.4% and 0.5% respectively. Technical analysis shows gold targeting the $2,060 level, with support now established at $2,035. The improving geopolitical backdrop could continue supporting risk assets while maintaining gold's appeal as an inflation hedge amid ongoing global monetary easing.