Gold prices edged lower on Tuesday, reversing course after gains in early trade as sharply stronger U.S. dollar weighed, while investors assessed a widening Middle East conflict and oil supply worries.
Spot gold was last down 0.4% at $5,303.12 an ounce by 01:24 ET (06:24 GMT) after rising as much as 1% to $5,379.65/oz earlier in the session.
U.S. Gold Futures traded largely flat at $5,316.06/oz.
The yellow metal gained 1% in the previous session.
Get premium commodity market insights with analyst comments on InvestingPro
Gold supported by widening Middle East conflict Bullion, viewed as a safe haven in times of geopolitical stress, has been supported after a weekend of heavy military action in West Asia.
U.S. and Israeli forces launched large-scale strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei and numerous senior commanders, prompting Tehran to retaliate with missile barrages across the region.
The conflict has spread beyond Iran’s borders, with Israeli strikes on Lebanon following attacks by Hezbollah and a reported incident in which Kuwaiti air defences mistakenly downed U.S. jets.
U.S. President Donald Trump said the operation could continue for some weeks and acknowledged uncertainty within Iran’s leadership after Khamenei’s death, underscoring the potential for prolonged regional instability.
Iran has vowed to attack any vessel attempting to transit the crucial Strait of Hormuz, a vital chokepoint for global oil flows, heightening fears of supply disruption and adding to safe-haven demand for gold.
Stronger dollar limits upside; silver, platinum drop Oil prices have surged sharply on supply risk fears, which in turn have bolstered inflation expectations and supported gold’s appeal, though the near-term rally remained capped by a firm U.S. dollar.
The US Dollar Index rose 0.4% during Asian hours, after jumping 0.8% to its highest since late January, in the previous session. A stronger greenback weighs on gold as it makes the metal more expensive for foreign buyers.
Other precious metals also erased early gains to fall sharply. Silver prices slipped 3% to $88.64 per ounce, while platinum dropped 4% to $2,224.06/oz.
Benchmark Copper Futures on the London Metal Exchange were muted at $13,113.72 a ton, while U.S.Copper Futures fell 0.4% to $5.94 a pound.
