Gold prices declined on Tuesday, pressured by a firmer US dollar and lingering uncertainty around potential peace talks between the United States and Iran, while investors also remained cautious ahead of a key Federal Reserve nomination hearing.
Spot gold fell 0.7 per cent to USD 4,785.56 per ounce, while US gold futures for June delivery slipped 0.5 per cent to USD 4,804.70.
The dollar strengthened during the session, making dollar-denominated commodities more expensive for holders of other currencies and dampening demand for bullion.
Investor sentiment remained cautious despite signs that US-Iran talks could resume in Pakistan. While Washington expressed confidence about the negotiations, Tehran indicated it was still considering participation, with uncertainty persisting as a two-week ceasefire approaches its end.
Tensions remained elevated after Iran condemned what it described as a US attack on its commercial vessel Touska over the weekend, demanding its immediate release.
Oil prices eased on expectations that renewed talks could ease supply concerns from the Middle East. However, elevated crude prices since the onset of the conflict have raised inflation worries globally.
Although gold is traditionally viewed as a hedge against inflation, its appeal tends to weaken in a high interest rate environment due to its non-yielding nature.
In the US, Federal Reserve nominee Kevin Warsh is set to face a Senate confirmation hearing, where he is expected to emphasise the importance of maintaining the independence of monetary policy.
Among other precious metals, silver fell 1.2 per cent to USD 78.94 per ounce, platinum declined 1 per cent to USD 2,068.32, while palladium rose 0.3 per cent to USD 1,555.41. |
