Gold fell on Tuesday after hitting a near six-week high as the US dollar rose and risk appetite revived in global financial markets, but the precious metal remained underpinned by an array of geopolitical tensions. The US dollar rose versus a currency basket, as returning risk appetite dented investor appetite for the US currency. A stronger dollar makes dollar-priced gold costlier for non-US investors.
"There's going to be a few months of talks before uncertainty around the global trade situation can be erased, and in the meantime gold will at times benefit," said Simona Gambarini, commodities economist at Capital Economics. "In the short term we definitely see gains (for gold)." Spot gold dropped 0.7 percent at $1,343.84 per ounce by 1:40 p.m. EDT (1740 GMT), after touching $1,356.66, its highest since Feb. 16.
US gold April futures settled down $13, or 1 percent, at $1,342 per ounce. Underpinning gold, Moscow said on Tuesday it would respond harshly to a US decision to expel 60 Russian diplomats over a nerve agent attack on a former Russian spy in Britain, but was still open to strategic stability talks with Washington. Market participants are looking ahead to key data, after new US Federal Reserve Chairman Jerome Powell last week said the US economy does not appear to be running hot.
Meanwhile, spot silver lost 0.7 percent at $16.54 per ounce after hitting a near three-week high of $16.80. Platinum dropped 1.1 percent at $941.99 per ounce, hitting $935, its lowest since Jan. 3. Palladium increased 0.1 percent at $974.50 per ounce.
Comments
Comments are closed for this article.