Gold prices remained largely steady on Tuesday as investors took a breather following recent volatility, with attention turning to developments in the Middle East conflict after U.S. President Donald Trump paused a planned attack against Iran.
Spot gold edged down 0.1% to $4,560.39 per ounce by 0228 GMT, after hitting its lowest level since March 30 on Monday. U.S. gold futures for June delivery gained 0.1% to $4,563.50.
Market Sentiment and Fed Minutes
Ilya Spivak, head of global macro at Tastylive, noted: "The general theme around the markets today is the dust is settling from Friday and markets are trying to figure out where they go next as they look to this event risk midweek," referring to the minutes of the Federal Reserve's April meeting.
Investors expect the minutes, due on Wednesday, to offer fresh clues on the U.S. central bank's monetary policy path. Gold prices extended their fall on Monday from the session before to hit a more than one-month low, as mounting inflation fears triggered a rout in the global bond market. Bullion later recovered to close slightly higher.
Geopolitical Developments
U.S. President Donald Trump said on Monday he had paused a planned attack against Iran to allow for negotiations to take place on a deal to end the U.S.-Israeli war, after Iran sent a new peace proposal to Washington.
Oil prices fell more than 2%, easing some inflation fears. Gold is considered a hedge against inflation, though higher interest rates tend to weigh on the non-yielding metal.
Fed Leadership and Other Metals
Kevin Warsh will be sworn in as Fed chief on Friday by Trump, a White House official said on Monday, putting the financier at the helm of the central bank as it grapples with intensifying inflation that may make it hard to push through the interest-rate cuts Trump desires.
Spot silver fell 1.3% to $76.63 per ounce, platinum lost 0.5% to $1,969.84, and palladium dropped 1.2% to $1,401.74.
