Gold rebounded as investors focused on a key US inflation report, after the precious metal slumped with other haven assets on Monday following a trade truce between Washington and Beijing.

Bullion rose 0.6% to trade above $3,250 an ounce, after a major de-escalation in US-China trade tensions triggered a sharp selloff. Investors will be watching the US inflation report for April, potentially the first to show tariff-related costs.

On Sunday the world’s biggest economies agreed to temporarily lower tariffs, with the US slashing duties on Chinese products to 30% from 145% for a 90-day period, while Beijing dropped its levy on most goods to 10%.

The US dollar rose the most since a post-election rally in November, while Treasury yields climbed — both acting as headwinds for gold. Traders now see just two rate cuts from the Federal Reserve in 2025 in a reset of inflation expectations. That reduces bullion’s appeal as the metal pays no interest.

Gold remains almost a quarter higher this year, although the easing of US-China tensions has given traders a clear indication President Donald Trump’s administration is taking a softer approach to trade with the world’s second-largest economy. Still, some investors remain wary about the lack of detail in their announcement, and another flare-up could propel bullion back toward the record set last month.

“The devil is in the details during negotiations,” said Christopher Wong, a strategist from Oversea-Chinese Banking Corp. “Some degree of caution remains warranted, as we see consolidation in the range of $3,150 to $3,350 an ounce.”