Gold prices fell on Tuesday, retreating from near a four-week high, as a modest rise in the dollar weighed on the metal, although uncertainty over the US-China trade agreement kept investors cautious and limited the bullion’s decline.
Spot gold fell 0.5 percent to $3,362.57 an ounce, after hitting its highest level since May 8 earlier in the session. US gold futures were down 0.3 percent to $3,386.60.
The metal gained about 2.7 percent in the previous session, marking its strongest daily performance in more than three weeks.
“Dollar recovered slightly and gold came down so it has been inversely correlated at this point of time,” said Brian Lan, managing director at GoldSilver Central, Singapore.
However, gold is still closely tracking developments around global trade, and while investors have slightly reduced their positions in gold, it is not to the extent seen in previous instances when tensions appeared to ease, said Lan.
The US dollar index recovered slightly from a six-week low.
Trade-related uncertainty remains a key focus.
US President Donald Trump and Chinese President Xi Jinping will likely speak this week, the White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.
