Gold prices were largely steady on Tuesday, as investors took a breather after recent volatility
while focusing on developments surrounding the Middle East
conflict after U.S. President Donald Trump paused a planned
attack against Iran.
Spot gold fell 0.1% to $4,560.39 per ounce by 0228
GMT, after hitting its lowest level since March 30 on Monday.
U.S. gold futures for June delivery gained 0.1% to
$4,563.50.
“The general kind of theme around the markets today is the
dust is settling from Friday and markets are kind of trying to
figure out where they go next as they look to this event risk
midweek,” said Ilya Spivak, head of global macro at Tastylive,
referring to the minutes of the Federal Reserve’s April meeting.
Investors expect the minutes, due on Wednesday, to offer
fresh clues on the US central bank’s monetary policy path.
Gold prices extended fall on Monday from the session before
to hit a more than one-month low, as mounting inflation fears
triggered a rout in the global bond market. Bullion later in the
day recovered to close slightly higher.
US President Donald Trump said on Monday he had paused a
planned attack against Iran to allow for negotiations to take
place on a deal to end the U.S.-Israeli war, after Iran sent a
new peace proposal to Washington.
Oil prices fell more than 2%, easing some inflation fears.
Gold is considered a hedge against inflation, though higher
interest rates tend to weigh on the non-yielding metal.
Kevin Warsh will be sworn in as Fed chief on Friday by
Trump, a White House official said on Monday, putting the
financier at the helm of the central bank as it grapples with
intensifying inflation that may make it hard to push through the
interest-rate cuts Trump desires.
Spot silver fell 1.3% to $76.63 per ounce, platinum
lost 0.5% to $1,969.84, and palladium dropped 1.2%
to $1,401.74.