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% to $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% to $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%.
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% last year to 2.9% in 2025 and 2026, trimming March estimates for growth of 3.1% this year and 3.0% 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% to $34.26 an ounce, platinum lost 0.6% to $1,056.70, while palladium was up 0.5% at $993.63.
