Investing.com – Gold prices traded roughly unchanged on Tuesday as the dollar’s rebound from session lows kept a lid on upside momentum in the precious metal ahead of the release of the Federal Reserve’s May meeting minutes.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose by $0.60, or 0.05%, to $1,291.50 a troy ounce.
Gold prices retreated from a high of $1,295.60 as the dollar clawed back its losses to turn positive for the day ahead of the Fed’s May meeting minutes due Wednesday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to 93.53 after hitting a session low of 93.20.
A stronger dollar makes gold more expensive for holders of foreign currency, reducing demand for the yellow metal.
The Federal Reserve’s minutes could renewed expectations for a faster pace of rate hikes, weighing on gold prices, should it reveal policymakers leaned more hawkish on monetary policy as inflation edged closer to target.
The Fed’s preferred measure of inflation currently sits at 1.9%, just shy of the U.S. central bank’s 2% target. But recent data including two regional manufacturing surveys has stoked expectations for an uptick in price pressures.
Gold was also supported by an uptick in geopolitical tensions after President Donald Trump on Tuesday said he was not pleased with recent U.S.-China trade talks and also raised doubts about whether the U.S.-North Korea summit would take place.
In other precious metal trade, silver futures rose 0.30% to $16.57 a troy ounce, while platinum futures gained 0.96% to $908.40 an ounce.
Copper rose 0.92% to $3.13.