Although China’s vacation reduced liquidity, gold prices remained stable on Tuesday as bullion attempted to bounce back from its worst intra-day performance in over a month due to a global sell-off triggered by China’s DeepSeek AI model.
As of 0656 GMT, spot gold was stable at $2,739.28 an ounce. US gold futures increased to $2,742.50, up 0.2%.
As investors sold off bullion to offset losses from a broader market sell-off caused by technology equities, the DeepSeek’s low-cost, low-power AI model raised concerns about conventional AI bellwethers, causing gold to drop more than 1% on Monday—the most since December 18.
The focus is now on the US Federal Reserve’s two-day policy meeting that begins later this month, as China’s markets are closed for the Lunar New Year holidays.
