Gold prices rose for a second session on Tuesday as the dollar weakened, with markets evaluating the possible consequences of US President Donald Trump’s policies in his second term after his inauguration.

Spot gold gained 0.6% to $2,724.74 per ounce by 0240 GMT.

US gold futures was 0.2% lower at $2,742.50. The dollar was down about 1% after reports suggested any new taxes would be imposed in a “measured” way.

A weaker dollar makes gold more attractive to foreign buyers.

“There is a sense of relief in risk sentiment to know that tariffs have not been an immediate focus. The unwinding of bets on imminent trade tensions is most evident in the US dollar,” IG market strategist Yeap Jun Rong said.

“The mixed dynamics do see gold prices holding up for now and we may expect gold to remain an attractive hedge instrument. The $2,720 level will be an immediate resistance to watch.”

After weeks of global speculation over which duties Trump would impose tariffs on his first day in office, news that Trump would take more time on tariffs drove a relief rally in global stocks and pressured the US dollar.

Trump had proposed tariffs of up to 10% on global imports, 60% on Chinese goods, and a 25% import surcharge on Canadian and Mexican products.

While gold is traditionally viewed as an inflation hedge, Trump’s policies are seen as inflationary which could lead the Federal Reserve to maintain higher interest rates, affecting gold’s appeal.

The degree to which the incoming administration implements Trump’s policy pledges will significantly influence the future direction of US interest rates.

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The non-yielding bullion tends to thrive in a low-interest rate environment.

Spot silver added 0.4% to $30.61 per ounce. Palladium dropped 1.2% to $933.25 and platinum shed 0.1% to $941.30.