Gold Eases From Near Four-Week High As Dollar Strengthens
Gold prices fell on Tuesday, retreating from a near four-week high, as a modest rise in the dollar weighed on the metal, although uncertainty over a U.S.-China trade deal kept investors cautious and limited bullion’s decline.
Spot gold was down 0.5% at $3,362.57 an ounce, as of 0429 GMT, after hitting its highest since May 8 earlier in the session. U.S. gold futures were down 0.3% at $3,386.60.
The metal rose about 2.7% in the previous session, marking its strongest daily performance in more than three weeks.
“The dollar has recovered a bit and gold has come down so it’s inversely correlated at the moment,” said Brian Lan, managing director at GoldSilver Central in Singapore.
However, gold is still closely monitoring global trade developments, and while investors have reduced their positions in gold somewhat, it is not to the extent seen in previous instances when tensions appeared to ease, Lan said.
The U.S. dollar index (.DXY), opens new tab recovered slightly from a six-week low.
Uncertainties over trade remain a major focus.
U.S. President Donald Trump and Chinese President Xi Jinping are likely to speak this week, the White House said on Monday, days after Trump accused China of violating an agreement to lift tariffs and trade restrictions.
U.S. tariffs on imported steel and aluminum are set to double to 50% on Wednesday, coinciding with the Trump administration’s deadline for countries to present their best offers in trade negotiations.
The European Commission said on Monday it would make a strong case this week for the U.S. to reduce or eliminate tariffs despite Trump’s decision to double duties on steel and aluminum. Elsewhere, spot silver fell 1.9% to $34.12 an ounce, platinum edged up 0.1% to $1,064.66, and palladium fell 0.1% to $986.10.
Source: Reuters
