Gold prices remained largely stable on Tuesday, as investors took a breather following recent volatility, shifting their focus to developments surrounding the conflict in the Middle East after US President Donald Trump canceled a planned strike on Iran.
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Spot gold fell 0.1% to $4,560.39 per ounce, after hitting its lowest level since March 30 on Monday. US gold futures for June delivery rose 0.1% to $4,563.50.
"Markets are kind of trying to find their next direction ahead of this event risk," said Ilya Spivak, head of global macro at Tastylive, referring to the Federal Reserve's (US central bank) April meeting minutes.
Investors expect the minutes, scheduled for release tomorrow, Wednesday, to provide fresh clues regarding the trajectory of the US central bank's monetary policy.
Trump said on Monday that he had halted a scheduled strike on Iran to allow for negotiations on a deal to end the US-Israeli war, after Iran sent a new peace proposal to Washington.
Oil prices dropped by more than 2%, easing some inflation concerns. Gold is traditionally considered a hedge against inflation, but higher interest rates tend to weigh on the non-yielding yellow metal.
A White House official said on Monday that Kevin Warsh will be sworn in as Federal Reserve Chairman before Trump on Friday, concluding the process of appointing the financial expert to head the central bank at a time when the Fed faces worsening inflation, which could complicate the interest rate cuts the US President strongly desires.
Regarding other precious metals, spot silver fell 1.3% to $76.63 per ounce, platinum slid 0.5% to $1,969.84, and palladium dropped 1.2% to $1,401.74.
(Reuters)
