May 21: Gold prices eased on Tuesday as the dollar firmed, with the metal backing away from a record peak hit in the previous session on bullish factors such as growing U.S. rate cut bets and geopolitical risks driving safe-haven demand.
Spot gold was down 0.5 per cent at US$2,413.69 per ounce, as of 0538 GMT, after hitting a record high of $2440.49 on Monday.
U.S. gold futures fell 0.9 per cent at US$2,417.10.
The dollar rose 0.1 per cent making greenback-priced bullion less attractive to buyers holding other currencies.
Lower interest rates and geopolitical uncertainties make bullion a favourable investment.
"Market expectations of interest rate cuts starting this year have gone up a bit with the cooling inflation numbers that came in last week. On the other side, geopolitical risks played a major role in pushing gold prices to a fresh record high," said ANZ commodity strategist Soni Kumari.
"China buying has been exceptional in the first quarter with their bar and coin demand being very strong, recording its highest since 2017. These factors are offsetting the investment outflows in ETFs (exchange traded funds) and pushing prices higher."
Minutes of the Federal Reserve's last policy meeting due on Wednesday along with comments from a slew of Fed speakers will be keenly awaited this week.
Adding to gold's upside was elevated risk aversion as Iranian President Ebrahim Raisi was killed in a helicopter crash near the Azerbaijan border on Sunday.
Spot silver fell 1.4 per cent to US$31.38 an ounce after hitting a more than 11-year high in the last session.
"Silver is the beta for gold. Investors are attracted to silver because fundamentals are very strong coupled with growing industrial demand and it's a cheaper alternative to gold," Kumari said.
Platinum lost 0.9 per cent to US$1,036.95, after hitting its highest since May 12, 2023, on Monday. Palladium dropped 1.9 per cent to US$1,007.75. - Reuters