Gold fell nearly 1% on Tuesday after hitting a near four-week high, pressured by a stronger dollar as investors turned cautious ahead of a potential call between U.S. President Donald Trump and Chinese leader Xi Jinping.
Spot gold fell 0.9% to $3,352.30 an ounce by 2:26 p.m. ET (1826 GMT), after hitting its highest since May 8 earlier in the session.
U.S. gold futures settled 0.6% lower at $3,377.10.
The dollar (.DXY), opens a new tab , rose 0.5% from a more than month-long low hit earlier in the session, making gold more expensive for foreign buyers. "We're entering what's known as the summer doldrums, so there's an expectation that the gold market could have a little bit of a doldrums or sideways consolidation," said David Meger, director of metals trading at High Ridge Futures.
Markets are on edge ahead of a possible Trump-Xi phone call this week, after Trump accused China of violating an agreement to lift tariffs. The talks come as trade tensions between the world's two largest economies continue to simmer.
Separately, the European Commission said it would push for lower U.S. tariffs even as Trump proposed doubling duties on steel and aluminum, while Washington urged trading partners to submit revised offers by Wednesday to speed up talks.
Investors are also eyeing Friday's U.S. nonfarm payrolls data and a series of Federal Reserve speakers for clues on interest rate policy.
U.S. data on Tuesday showed job openings rose in April, but higher layoffs signaled a cooling labor market amid growing tariff concerns. "I do think the Fed is ready to start cutting rates again, but it's not likely until September … that's another factor that could weigh on the dollar and support gold," Meger added.
Gold, a safe haven during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. It's up about 28% this year.
Spot silver fell 0.8% to $34.51 an ounce, but held near a seven-month peak hit in the previous session.
Continued strength in copper, driven by strong Chinese demand, tight global supplies and the green energy trend, could support silver's rally, Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
Platinum rose 0.9% to $1,073.14 an ounce, while palladium gained 2.1% to $1,009.83. (alg)
Source: Reuters
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