Gold prices moved lower on Tuesday, giving back earlier gains as a firmer U.S. dollar pressured the metal, even as investors weighed escalating conflict in the Middle East and concerns over oil supply disruptions.
Spot gold was down 0.4% at $5,303.12 an ounce as of 01:24 ET (06:24 GMT), after climbing as much as 1% earlier in the session to $5,379.65 per ounce.
U.S. gold futures were broadly unchanged at $5,316.06 per ounce.
The precious metal had risen 1% in the previous session.
Geopolitical tensions lend support to gold
Bullion — traditionally viewed as a safe-haven asset during periods of geopolitical instability — drew support following a weekend marked by intense military activity in West Asia.
U.S. and Israeli forces carried out extensive strikes on Iran that reportedly killed Supreme Leader Ayatollah Ali Khamenei along with several senior commanders, triggering retaliatory missile attacks by Tehran across the region.
The violence has extended beyond Iran, with Israeli operations in Lebanon following attacks by Hezbollah, and reports of an incident in which Kuwaiti air defenses mistakenly shot down U.S. aircraft.
President Donald Trump said military operations could continue for several weeks and acknowledged uncertainty within Iran’s leadership after Khamenei’s death, highlighting the risk of sustained regional instability.
Iran has also threatened to target any vessel attempting to pass through the Strait of Hormuz, a key transit route for global oil shipments. The warning has amplified fears of supply disruptions and reinforced safe-haven flows into gold.
Dollar strength caps gains; silver and platinum retreat
Crude oil prices have climbed sharply on supply risk concerns, lifting inflation expectations and supporting gold’s broader appeal. However, near-term upside has been limited by the strength of the U.S. dollar.
The U.S. Dollar Index rose 0.4% during Asian trading hours after surging 0.8% in the previous session to its highest level since late January. A stronger dollar typically weighs on gold by making it more expensive for buyers using other currencies.
Other precious metals also reversed early advances and posted notable declines. Silver dropped 3% to $88.64 per ounce, while platinum slid 4% to $2,224.06 per ounce.
Benchmark copper futures on the London Metal Exchange were little changed at $13,113.72 per ton, while U.S. copper futures fell 0.4% to $5.94 per pound.