Gold price continues to attract haven flows after Trump’s tariff threats

US President-elect Donald Trump pledged to impose tariffs on all products coming into the US from Canada, Mexico and China, driving some follow-through haven flows towards the Gold price. 

Ukraine reported the biggest Russian drone attack on its territory on Tuesday. Russia used a hypersonic missile on Ukraine last week and is advancing at the fastest rate since the 2022 invasion.

Russia is reported to be using North Korean troops in Ukraine. Ukraine is striking targets deep inside Russia with Western-supplied missiles, raising the risk of a further escalation of the conflict.

The long-running Middle East conflict de-escalated after US President Joe Biden announced that Lebanon and Israel agreed to a ceasefire deal effective from 02:00 GMT this Wednesday.

The Conference Board reported on Tuesday that the US Consumer Confidence  Index climbed to 111.7 in November – the highest since July 2023 – from 109.6 in the previous month.

Minutes of the November 6-7 FOMC meeting showed that officials were divided over how much farther they may need to cut rates and were uncertain about the direction of the economy.

The CME Group's FedWatch Tool indicates that investors are still pricing in a 63% chance that the US central bank will lower borrowing costs by 25-basis-point at the December meeting. 

President-elect Donald Trump's nominee for US Treasury secretary, Scott Bessent is expected to take a more phased approach on tariffs in an attempt to rein in the budget deficit.

The yield on the benchmark 10-year US government bond holds steady above a two-week low touched on Monday and the US Dollar is seen consolidating near the weekly low. 

Wednesday's US economic docket features the release of the prelim Q3 GDP print and the Personal Consumption Expenditure (PCE) Price Index later during the North American session.