Gold prices moved lower in Asian trading on Tuesday as investors closely followed developments surrounding the fragile ceasefire between the United States and Iran, while also awaiting a highly anticipated meeting between Donald Trump and Chinese President Xi Jinping later this week.
Spot gold declined 0.7% to $4,702.84 per ounce by 02:52 ET (06:52 GMT), while U.S. gold futures slipped 0.4% to $4,710.66 per ounce.
Other precious metals also traded lower, with spot silver falling 2.4% to $84.03 per ounce and platinum declining 3.2% to $2,067.19 per ounce.
Trump Says Iran Truce Remains Under Pressure
Market sentiment remained cautious after Trump criticised Iran’s latest response to a U.S.-supported peace proposal, calling it “a piece of garbage” and warning that the ceasefire remained at risk after weeks of indirect negotiations.
The U.S. president described the truce as being on “massive life support,” raising concerns that tensions in the Gulf could intensify again.
Iranian officials responded by saying the country’s military was prepared to respond forcefully to any “act of aggression.”
Tehran also defended its negotiating position, arguing that demands related to sanctions relief, restoring oil exports and recognition of Iran’s authority over the Strait of Hormuz were justified.
Oil prices stayed elevated on Tuesday amid concerns that additional disruption around the Strait of Hormuz could impact global crude supply flows.
Higher energy prices have limited support for gold, as investors worry that persistent inflationary pressure could prompt the Federal Reserve to keep interest rates elevated for an extended period. Higher rates generally reduce the attractiveness of non-yielding assets such as bullion.
Focus Turns to U.S. Inflation Figures and Trump-Xi Discussions
Investors are also watching closely for Trump’s expected meeting with Xi Jinping in Beijing later this week.
The discussions are expected to cover a range of geopolitical and economic topics, including Iran, Taiwan, trade disputes, artificial intelligence and energy security.
Attention is also shifting toward upcoming U.S. inflation data, especially the Consumer Price Index report due later Tuesday, which could offer additional clues about the Federal Reserve’s future monetary policy direction.
The U.S. Dollar Index gained 0.2% during Asian trading hours, making gold more expensive for investors using foreign currencies.
In base metals trading, benchmark copper futures on the London Metal Exchange slipped 0.3% to $13,848.13 per ton, while U.S. copper futures declined 0.6% to $6.45 per pound.
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