WASHINGTON (dpa-AFX) - Gold prices inched higher on Tuesday as the U.S. dollar weakened further due to trade-related uncertainties, concerns over ballooning fiscal debt and weakened confidence about enduring U.S. exceptionalism.
Geopolitical tensions were also in focus after U.S. President Donald Trump hinted that the U.S. might withdraw completely in further attempts to solve the Ukraine-Russia impasse.
Spot gold edged up by 0.2 percent to $3,236.10 per ounce in European trade while U.S. gold futures were up 0.2 percent at 3,238.69.
The U.S. dollar index held around 100 mark after two Federal Reserve officials signaled that interest rates are likely to remain on hold until at least September due to a murky economic outlook.
Fed Vice Chair Philip Jefferson backed a wait-and-see approach, citing uncertainty and warning against temporary price increases becoming sustained inflation.
Atlanta Fed President Raphael Bostic told CNBC that he's leaning toward just one quarter point rate cut this year, given concerns about rising inflation stoked by higher import taxes.
On the geopolitical front, Russian President Putin and U.S. President Trump had a two-hour phone call on May 19, discussing preferences for quick agreements on the Ukraine conflict and diplomacy over sanctions. They did not set a ceasefire timeline, leaving the issue unresolved. But both leaders expressed interest in meeting in person.
Elsewhere, Iran said nuclear talks could break down if the U.S. insists on no enrichment.
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