NEW YORK: Gold prices held steady on Tuesday after a 3% drop in the previous session, supported by increased safe-haven demand following President-elect Donald Trump’s pledge to impose tariffs on all imports from Canada, Mexico and China.

Spot gold was steady at $2,625.48 per ounce, as of 0259 GMT, after hitting its lowest since Nov. 18 earlier in the session. US gold futures edged 0.3% higher to $2,625.80.

“Despite the extended sell-off yesterday, gold is holding up relatively well, which suggests some safe-haven demand,” said said Matt Simpson, senior analyst at City Index, adding “we could see more turbulence ahead, especially with Trump back in focus.” Trump vowed hefty tariffs on Canada, Mexico, and China — risking trade wars. Gold is traditionally considered a safe-haven investment during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.

Meanwhile, Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the US central bank’s policy spectrum, said he is open to cutting rates again next month. According to the CME Group’s FedWatch Tool, markets currently estimate a 55.9% chance of a 25-basis-point US Federal Reserve rate cut in December.

Traders will keep a close eye on US consumer confidence data and the minutes from the Fed’s November meeting later today, as well as the first revision of GDP and core PCE figures are set to be released later this week.

“I expect gold to trade in a narrow range in the short term, with a slight upward drift,” Simpson added. On the geopolitical front, US President Joe Biden and French President Emmanuel Macron are set to announce a ceasefire in Lebanon between Hezbollah and Israel, according to four senior Lebanese sources. Spot silver was flat at $30.29 per ounce, platinum shed 0.2% to $937.05 and palladium was up 0.3% at $975.65.