Spot gold was 0.5% lower at $2,413.69 per ounce after reaching a record high of $2,449.89 on Monday
Gold prices eased on Tuesday as the dollar firmed, with the metal backing away from a record high hit in the previous session on bullish factors like growing U.S. rate cut bets and geopolitical risks driving safe-haven demand.
Spot gold was 0.5% lower at $2,413.69 per ounce, as of 0538 GMT, after reaching a record high of $2,449.89 on Monday.
U.S. gold futures dropped 0.9% at $2,417.10.
The dollar added 0.1% making greenback-priced bullion less attractive to holders of other currencies.
Lower interest rates and geopolitical uncertainties make bullion a favourable investment.
Market expectations of interest rate cuts starting this year have gone up a bit with the cooling inflation numbers that came in last week. On the other side, geopolitical risks played a major role in pushing gold prices to a new record high, said ANZ commodity strategist Soni Kumari.
China buying has been exceptional in the first quarter with their bar and coin demand being very strong, logging its highest since 2017. These factors are offsetting the investment outflows in ETFs and pushing prices up, she added.
Minutes of the Fed’s last policy meeting due on Wednesday along with comments from a number of Fed speakers will be keenly awaited this week.
Spot silver dropped 1.4% to $31.38 an ounce after reaching a more than 11-year high in the last session.
Silver is the beta for gold. Investors are attracted to silver because fundamentals are very strong along with growing industrial demand and it is a cheaper alternative to gold, Kumari added.
Platinum shed 0.9% to $1,036.95, after hitting its highest since May 12, 2023, on Monday. Palladium declined 1.9% to $1,007.75.
