Gold prices rose on Tuesday, extending a recent run of strength, though broader market commentary suggests the precious metal remains caught between conflicting forces: safe haven demand and a resilient U.S. dollar.
Spot gold increased by 0.5% to reach $4,757.59 per ounce as of 00:50 GMT, while US gold futures for June delivery rose by 0.8% to record $4,768.20.
Silver in spot transactions increased by 0.2% to reach $86.27 per ounce, while platinum fell by 0.2% to $2,127, and palladium declined by 0.2% to $1,506.34.
The moves come as investors digest a complex landscape of geopolitical tensions, a strong labor market, and shifting expectations for Federal Reserve interest rate policy.
Vijay Valecha, Chief Investment Officer at Century Financial, said that gold remains under pressure at the start of the week, slipping toward $4,670 (-0.9%) in Asian trading as fading hopes for a near-term US-Iran peace agreement have kept oil prices elevated and reinforced higher-for-longer rate expectations. President Trump’s rejection of Iran’s latest proposal, alongside ongoing disruptions in the Strait of Hormuz, has intensified inflation concerns and supported the US dollar, weighing on non-yielding assets such as bullion.
US Nonfarm Payrolls came in at 115K, beating the expected 65K and supporting a higher-for-longer rate view, which has added pressure on gold. However, underlying demand trends look positive. The World Gold Council reported that global gold ETFs saw inflows of over $6.6 billion in April, after March’s outflows. China and Hong Kong led this renewed interest in safe-haven assets. Central banks, especially the PBOC, continue to buy gold, helping to support prices. While gold’s short-term direction depends on real rates and the dollar, stronger inflows suggest the risks may be shifting to the upside, especially if global yield pressures ease. Investor attention is now focused on April’s U.S. Consumer Price Index data, due tomorrow, for further clues on the Fed’s monetary policy direction.
On the daily chart, gold remains range-bound with a cautiously bullish bias if it sustains above the 50% Fib level and the 9 EMA around $4,650-$4,655, which also serves as support. Resistance may be seen at $4,700. A sustained break above this level could open the path toward the 61.8% Fib level at $4,745. Silver has seen strong momentum over the past five sessions and remains bullish in the near term. Support lies around $78.30 with possible resistance at $83.00, a previously tested level.
