Gold retreats from near four-week high as dollar gains; investors stay cautious
NEW YORK: Gold pulled back on Tuesday after nearing a four-week high earlier in the session, as a rebound in the dollar and profit-taking added pressure, while investors remained cautious amid ever-changing US trade policies.
Spot gold fell 0.7 per cent to US$3,356.75 an ounce as of 1125 GMT, after hitting its highest since May 8 earlier in the session. US gold futures eased 0.5 per cent to US$3,381.30.
The dollar rose from an over-a-month low hit earlier in the session, making gold costlier for foreign buyers.
"Today, the dollar trades a tad stronger ahead of key US economic data and these developments are the main reason why we are seeing some light profit following yesterday's strong gain," said Ole Hansen, head of commodity strategy at Saxo Bank.
Investors will be closely watching a likely call this week between US President Donald Trump and Chinese leader Xi Jinping, just days after Trump accused China of breaching an agreement to reduce tariffs and trade restrictions.
The European Commission said on Monday it would push the US to reduce or eliminate tariffs, despite Trump's plan to double steel and aluminium duties to 50 per cent.
Meanwhile, the Trump administration is urging countries to submit their best trade offers by Wednesday, aiming to accelerate talks ahead of a five-week deadline, according to a draft letter seen by Reuters.
The OECD said on Tuesday the global economy was on course to slow from 3.3 per cent last year to 2.9 per cent in 2025 and 2026, trimming March estimates for growth of 3.1 per cent this year and 3.0 per cent next year.
Investors' focus this week will also be on US non-farm payrolls due on Friday and speeches from a slew of Federal Reserve policymakers for clues on the interest rate trajectory.
Zero-yielding bullion tends to do well in a low-interest rate environment.
Spot silver fell 1.5 per cent to US$34.26 an ounce, platinum lost 0.6 per cent to US$1,056.70, while palladium was up 0.5 per cent at US$993.63.
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