Spot gold prices edged lower on Tuesday. This followed a retreat from a one-month high, suggesting a four-day rally may be losing momentum. Traders appeared to take profits, influenced by a stronger U.S. dollar.
Gold had risen since last Wednesday due to escalating tensions between the United States and Iran. The threat of military action, alongside difficult negotiations, drove safe-haven buying. Prices climbed from a low of $4842.60 to a high of $5250.00.
Negotiations between the U.S. and Iran will resume on Thursday. This comes just three days before a deadline for potential military action. A deal could see gold prices fall, while a lack of agreement might encourage speculators to buy before the weekend.
Beyond Iran, traders also watch President Trump’s new tariffs on imported goods. Initial concerns about tariffs boosted gold, but markets have since calmed. The 50-day moving average sits at $4743.04, marking an uptrend. Support levels are seen between $5143.89 and $5002.31.