Gold prices edged lower on Tuesday, surrendering earlier gains as a stronger U.S. dollar weighed on the metal, even as investors continued to monitor the escalating conflict in the Middle East and rising concerns over oil supply risks.
Spot gold fell 0.4% to $5,303.12 per ounce by 01:24 ET (06:24 GMT), after climbing as much as 1% earlier in the session to $5,379.65 per ounce.
U.S. gold futures were little changed at $5,316.06 per ounce.
The precious metal had advanced 1% in the previous trading session.
Middle East escalation underpins safe-haven demand
Gold, widely regarded as a defensive asset during periods of geopolitical turmoil, found support following an intense weekend of military escalation in West Asia.
U.S. and Israeli forces launched sweeping strikes on Iran that reportedly killed Supreme Leader Ayatollah Ali Khamenei along with several high-ranking military officials, prompting Tehran to retaliate with missile attacks across multiple countries in the region.
The unrest has spread beyond Iran, with Israeli operations expanding into Lebanon after Hezbollah attacks, and reports emerging of an incident in which Kuwaiti air defenses accidentally downed U.S. aircraft.
President Donald Trump indicated that the military campaign could extend for several weeks and acknowledged uncertainty within Iran’s leadership following Khamenei’s death, highlighting the risk of a prolonged period of instability.
Iran has also threatened to strike vessels attempting to navigate the Strait of Hormuz, a critical artery for global oil shipments. The warning has heightened fears of supply disruptions and supported safe-haven flows into gold.
Firm dollar caps rally; silver and platinum decline
Oil prices have surged on mounting supply concerns, lifting inflation expectations and reinforcing gold’s broader appeal. However, gains in bullion have been constrained by the resilience of the U.S. dollar.
The U.S. Dollar Index rose 0.4% during Asian trading, after jumping 0.8% in the prior session to its strongest level since late January. A firmer dollar typically pressures gold by raising its cost for holders of other currencies.
Other precious metals also retreated after early advances. Silver dropped 3% to $88.64 per ounce, while platinum fell 4% to $2,224.06 per ounce.
Benchmark copper futures on the London Metal Exchange were broadly steady at $13,113.72 per metric ton, while U.S. copper futures declined 0.4% to $5.94 per pound.
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