Investing.com – Gold prices steadied on Tuesday as renewed demand for safe-haven gold emerged ahead of U.S. President Donald Trump’s decision on the Iran nuclear deal which offset an ongoing dollar rally to 2018 highs.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose by $0.10 or 0.01%, to $1,314.20 a troy ounce.
Gold prices found their footing as investors piled into gold ahead of U.S. president Donald Trump’s decision on the Iran nuclear deal at 2 pm.
Market participants remained uncertain as to the outcome of Trump’s decision amid conflicting reports.
Trump reportedly told French President Emmanuel Macron he would withdraw from the deal, New York Times said on Tuesday. That was later refuted, however, as Reuters cited Macron’s office had denied the story by the New York Times.
Renewed safe-haven demand helped soften the blow of an ongoing rally in the greenback to fresh 2018 highs amid expectations for additional Federal Reserve rate hikes.
Investing.com’s fed rate monitor tool showed more than 95% of traders expect the Federal Reserve to raise interest rate at its next meeting in June.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding gold as it pays no interest.
In other precious metal trade, silver futures fell 0.27% to $16.45 a troy ounce, while platinum futures lost 0.08% to $912.60 an ounce.
Copper fell 0.62% to $3.06.