New York: Gold prices steadied in Asian trade on Tuesday following a recent deescalation in tariffs between the United States and China, which initially led to significant losses in the metal, reported APA-Economics citing investing.com. Despite the initial drop, gold prices found stability as markets remained cautious about further easing of trade tensions. Additionally, upcoming U.S. consumer inflation data awaited by investors also contributed to the market's sentiment. According to Azeri-Press News Agency, Monday saw a sharp decline in gold prices after the U.S. and China announced a substantial reduction in trade tariffs for the next 90 days, following positive talks in Geneva. The U.S. agreed to lower its tariffs on Chinese goods to 30% from 145%, while China reduced its tariffs on U.S. goods to 10% from 125%. This announcement fueled optimism for resolving the extended Sino-U.S. trade conflict, triggering a surge in risk-driven assets like equities, which saw Wall Street indexes rise between 2.5% and 4.5%. The shift in market focus led to a decrease in demand for safe-haven assets like gold, which had previously gained from the uncertainty surrounding the trade tensions. The dollar also strengthened significantly, buoyed by optimism about the U.S. economy following the tariff reductions, further pressuring gold prices. While spot gold remained flat at $3,236.95 an ounce, gold futures for June saw a slight rise of 0.4% to $3,240.42/oz by 00:26 ET (04:45 GMT). Other precious metals, like platinum and silver, recorded gains on Tuesday but continued to recover from the substantial losses experienced in the previous session. Platinum futures increased by 0.5% to $982.65/oz, and silver futures rose by 1.7% to $33.163/oz. Industrial metals also reflected a positive trend, as the reduced trade tensions between the U.S. and China improved economic outlooks, boosting demand expectations. Benchmark copper futures on the London Metal Exchange increased by 0.4% to $9,519.35 a ton, with U.S. copper futures rising by 0.1% to $4.6335 a pound. Attention now turns to the upcoming U.S. consumer price index (CPI) inflation data, which is anticipated to reveal more about the condition of the world's largest economy. The CPI data, due later on Tuesday, is expected to show persistent inflationary pressures, partly due to higher U.S. trade tariffs driving some price hikes. This data is poised to influence the dollar's strength and impact expectations for the Federal Reserve's future interest rate decisions, both of which are closely linked to the outlook for gold. Goldman Sachs has adjusted its forecast for Federal Reserve interest rate cuts, now predicting only one cut this year, contrasting with earlier expectations of three cuts.