Gold prices fell yesterday as US stock markets stabilised, easing fears of a deeper sell-off, and the dollar strengthened, making bullion more expensive for users of other currencies.
Gold had surged on Monday as falling US share prices and fears of a global trade war pushed investors towards safer assets.
But while European stock markets continued to fall, led by technology shares, Wall Street rebounded.
Spot gold dropped 0,6 percent to $1,333.09 per ounce by 1:35 p.m. EDT (1735 GMT), after rising 1,3 percent on Monday.
US gold futures for June delivery settled down $9,60, or 0,7 percent, at $1,337.30 per ounce.
“Gold has given back some of its sharp gains from yesterday.
As well as a slightly positive tone in the stock markets, the dollar has rebounded against both the euro and the yen,” said Forex.com market analyst Fawad Razaqzada.
“The potential for a dollar rally is there this week, with Friday’s jobs report being the key event risk. Should the green-back regain its poise then gold could come under further pressure.”
Gold has struggled to break from a $1 300-$1 360 per ounce trading range since the start of the year.
“It’s going to take a significant trigger to push it beyond this range,” said Danske Bank analyst Jens Pedersen.
One potential trigger is a trade dispute between the world’s two largest economies, with the Trump administration expected this week to unveil a list of advanced technology Chinese imports targeted for US tariffs after Beijing raised tariffs on 128 US products