WASHINGTON (dpa-AFX) - Gold traded lower on Tuesday but hovered near a four-week peak amid escalating geopolitical tensions and simmering trade risks.
Spot gold dropped 0.6 percent to $3,359.92 per ounce in European trade after clocking its biggest daily gain in four weeks. U.S. gold futures were down 0.3 percent at $3,387.20.
Gold prices softened amid profit taking by investors as the dollar rebounded slightly following reports that U.S. President Donald Trump will speak with his Chinese counterpart Xi Jinping -- possibly this week --to address tariff disputes and improve relations.
In another development, Reuters reported that the Trump administration is asking countries to list their best proposals in a number of key areas by Wednesday, in order to finalize trade deals before July 8.
The Organization for Economic Co-operation and Development slashed its global growth forecast to 2.9 percent from its earlier forecast of 3.1 percent for 2025.
The Paris-based firm said the outlook across the globe has become challenging with rising trade barriers and policy uncertainty, which is weighing on consumer confidence and blocking investments.
In economic releases, U.S. reports on factory orders and job openings may attract some attention later in the day ahead of the monthly U.S. employment data and a widely expected policy rate cut from the European Central Bank.
Eurozone inflation eased more than expected in May largely due to the slowdown in services inflation, flash data from Eurostat showed earlier today.
Inflation softened to 1.9 percent in May, slightly below the central bank's target of 2 percent.
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