Gold falls from near four-week peak on firm dollar, traders eye Trump-Xi call

Gold fell nearly 1% on Tuesday after hitting a near four-week high, pressured by a firmer dollar as investors grew cautious ahead of a potential call between US President Donald Trump and Chinese leader Xi Jinping.

Spot gold fell 0.9% to USD 3,352.30 an ounce as of 2:26 p.m. ET (1826 GMT), after hitting its highest since May 8, earlier in the session.

US gold futures settled 0.6% lower at USD 3,377.10.

The dollar rose 0.5% from an over-a-month low hit earlier in the session, making gold costlier for foreign buyers.

“We are moving into this period that is well known to be the summer doldrums, so there’s an expectation that the gold market could fall into a bit of a lull or a sideways consolidation,” said David Meger, director of metals trading at High Ridge Futures.

Markets are on edge ahead of a likely Trump-Xi call this week, after Trump accused China of violating an agreement to roll back tariffs. The talks come as trade tensions between the world’s two largest economies continue to simmer.

Separately, the European Commission said it would push for lower US tariffs even as Trump proposed doubling duties on steel and aluminum, while Washington urged trade partners to submit revised offers by Wednesday to speed up talks.

Investors are also eyeing Friday’s US nonfarm payrolls data and a slate of Federal Reserve speakers for clues on rate policy.

US data on Tuesday showed job openings rose in April, but higher layoffs signaled a cooling labor market amid growing tariff concerns.

“I believe the Fed is ready to begin to cut rates again, but more than likely not until September … that is another factor likely to weigh on the dollar and support gold,” Meger added.

Gold, a safe-haven during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. It is up about 28% this year.

Spot silver fell 0.8% to USD 34.51 an ounce, but lingered near a seven-month peak hit in the previous session.

Continued copper strength, driven by firm Chinese demand, tight global supplies, and green energy trends, could support silver’s rally, Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.

Platinum rose 0.9% to USD 1,073.14 an ounce, while palladium climbed 2.1% at USD 1,009.83.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Andrea Ricci, Vijay Kishore, and Mohammed Safi Shamsi)