gold prices retreated on Tuesday after a rebound the previous day, with renewed selling across precious metals pushing spot bullion below $3,950 an ounce. At 00:55 ET (05:55 GMT), spot gold was down 0.7% at $3,920.44, while U.S. gold futures fell 1% to $3,929.67.
Other precious metals also declined. Silver lost 2.8% to $49.2455 an ounce, platinum fell 1% to $1,432.32, and spot palladium dropped 1.6% to $952.15. Palladium futures were down 1.9% at $944. The U.S. dollar index edged 0.1% lower to 101.75.
Gold had risen 1.9% on Monday after Iranian President Masoud Pezeshkian said his government had received greater authority from the country’s supreme leader to pursue peace negotiations. U.S. President Donald Trump also signalled progress in discussions, helping Brent crude fall more than 7% before oil prices stabilised on Tuesday.
The nine-month U.S.-Iran conflict has pushed energy prices higher and fuelled inflation, adding to pressure on central banks to raise interest rates. Higher borrowing costs tend to weigh on gold, which does not generate interest income. The recent easing in oil prices has temporarily reduced concerns about further monetary tightening.
Gold fell 6.8% in October, slipping below $4,000 toward the end of the month and reaching a one-year low. The metal also faced selling as investors liquidated bullion holdings to cover losses after a retreat in artificial intelligence-related stocks. Further weakness in Asian technology shares on Tuesday, following a deeper selloff in U.S. chipmakers, left gold exposed to additional pressure.
Investors are watching the U.S. midterm election results, which could influence gold during Wednesday’s Asian session. A change in the political landscape could bring renewed attention to U.S. inflation and fiscal deficits, potentially supporting bullion’s role as a hedge against economic and geopolitical uncertainty.
Technical signals and physical demand have offered some support. A measure of gold’s relative strength entered oversold territory last week, while ANZ said Chinese households had increased purchases during the recent price decline. Renewed fighting in the Middle East remains a risk, as hopes for diplomatic progress could quickly fade.
Sources: Investing.com News.