Gold prices fell on Tuesday, retreating from near a four-week high, as a modest rise in the dollar exerted pressure on the metal. However, uncertainty surrounding the U.S.-China trade agreement kept investors cautious, which limited the bullion’s decline.
In Dubai, gold rates have saw a decrease, with 24-carat gold dropping by AED1.00 to reach AED405.75. Similarly, 22-carat gold has declined by AED1.00, bringing its price to AED375.50. Additionally, 21-carat gold is down by AED2.50, now priced at AED358.50, while 18-carat gold has decreased by AED2.25, reaching AED307.25.
Spot gold fell 0.3 percent to $3,369.98 an ounce, as of 02:49 GMT (currently trading above $3,362), after hitting its highest level since May 8 earlier in the session. U.S. gold futures remained steady at $3,390 (currently trading above $3,385.10). The metal gained about 2.7 percent in the previous session, marking its strongest daily performance in over three weeks.
“Dollar recovered slightly and gold came down so it has been inversely correlated at this point of time,” Reuters reported, citing Brian Lan, managing director at GoldSilver Central, Singapore. However, gold is still closely tracking developments surrounding global trade. While investors have slightly reduced their positions in gold, it is not to the same extent seen in previous instances when tensions appeared to ease, noted Lan.
Read more: Dubai 24-carat gold price today up AED3.25 amid heightened tariff concerns
Dollar index recovery
The U.S. dollar index recovered slightly from a six-week low. U.S. President Donald Trump and Chinese President Xi Jinping are likely to speak this week, the White House stated on Monday, just days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. U.S. tariffs on imported steel and aluminum are scheduled to double to 50 percent starting on Wednesday, coinciding with the Trump administration’s deadline for countries to submit their best offers in trade negotiations.
The European Commission remarked on Monday that it would make a strong case this week for the U.S. to reduce or eliminate tariffs, despite Trump’s decision to double import duties on steel and aluminum.
Meanwhile, Russia informed Ukraine during peace talks on Monday that it would only agree to end the war if Kyiv concedes significant new territories and accepts limits on the size of its army, according to a memorandum reported by Russian media.
Elsewhere, spot silver fell 2.1 percent to $34.07 an ounce, platinum remained steady at $1,062.46, and palladium was up 0.1 percent at $990.26.
