Gold prices remained largely stable on Tuesday as investors paused after recent market volatility and shifted attention to developments in the Middle East following Donald Trump‘s decision to pause a planned military strike against Iran.
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Spot gold slipped 0.1% to $4,560.39 per ounce by 0228 GMT after touching its lowest level since March 30 in the previous session. Meanwhile, US gold futures for June delivery edged up 0.1% to $4,563.50 per ounce.
Market analysts said investors were reassessing market direction following sharp swings in recent sessions while awaiting the release of minutes from the Federal Reserve April meeting, expected on Wednesday. The minutes are likely to provide further indications about the central bank’s future monetary policy path.
Gold had dropped to a more than one-month low on Monday amid growing inflation concerns that triggered pressure across global bond markets before recovering later in the session.
Trump said negotiations with Iran were being given more time after Tehran submitted a new proposal aimed at ending the ongoing US-Iran tensions and broader regional conflict.
Oil prices also fell by more than 2%, helping reduce some inflation concerns. Gold is traditionally viewed as a hedge against inflation, although higher interest rates can reduce demand for the non-yielding precious metal.
Separately, reports indicated that Kevin Warsh is expected to assume leadership at the Federal Reserve amid growing economic pressures linked to inflation and interest rate policy.
Other precious metals also recorded declines, with silver falling 1.3% to $76.63 per ounce, platinum dropping 0.5% to $1,969.84, and palladium declining 1.2% to $1,401.74.
