WASHINGTON (dpa-AFX) - Despite geopolitical tensions and optimism about interest rate cuts, gold prices fell on Tuesday as the dollar recovered from recent losses.
The dollar index, which dropped to around 105.00 around mid morning, climbed to 105.36 later on, gaining more than 0.3%.
Gold futures for May ended down by $6.40 or about 0.28% at $2,315.20 an ounce. Gold for June delivery, the most active contract, settled lower by $7.00, or 0.3%, at $2,324.20 an ounce
Silver futures for May ended lower by $0.660 or 0.24% at $27.303 an ounce. Copper futures for May were down marginally at $4.6060 per pound.
According to a report from the Associated Press, the Israely military seized control of the Gaza Strip side of the Rafah border crossing with Egypt.
Israel continues to threaten a full-scale assault on Rafah even as ceasefire negotiations continue. Hamas reportedly accepted an Egyptian-Qatari cease-fire proposal to halt the seven-month war with Israel, but the latter said the deal didn't meet its 'core demand.'
Investors also reacted to hawkish comments from a couple of Federal Reserve officials. Fed Bank of Richmond President Thomas Barkin said Monday that he feels the risks are weighted towards more inflation.
New York counterpart John Williams said that the timing of rate cuts will depend on the totality of the incoming data.
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