By Apeksha Nair
BENGALURU (Reuters) - Gold prices remained subdued on Tuesday as the dollar held steady near its 2018-high on the relative strength of the U.S. economy.
Spot gold was down about 0.1 percent at $1,313.20 per ounce at 0635 GMT, after closing marginally lower in the previous session.
U.S. gold futures for June delivery were unchanged at $1,314.10 per ounce.
The dollar index hovered near a four-month high on Tuesday, continuing to draw support from higher Treasury yields and upbeat prospects for the U.S. economy, leaving its major rivals such as the euro struggling.
"While seeing some support from stronger oil prices and uncertainty over the U.S. position on Iran, gold continues to trade in-line with dollar flows, which are restricting any sustained top-side moves," MKS PAMP Group trader Sam Laughlin said in a note.
A stronger dollar makes gold and other greenback-denominated commodities more expensive for holders of other currencies.
Oil prices retreated from 3-1/2-year highs on Tuesday as investors waited for an announcement by U.S. President Donald Trump on whether the United States will reimpose sanctions on Iran. [O/R]
"I think the Iran deal is probably something that could turn things around. Oil might spike and gold could go with it," said a Hong Kong-based trader.
As benchmark oil prices touched $70 a barrel, U.S. Federal Reserve officials said on Monday that rising inflation and wage pressures are not enough yet to prompt a change in the central bank's rate outlook.
The market is awaiting Trump's decision on Iran and the U.S. Consumer Price Index (CPI) data for a move in gold prices, the trader said, adding that the Producer Price Index (PPI) numbers coming out this week might be something to look at to see "if there's more hawkishness going down to the end of the year".
Spot gold may revisit its May 1 low of $1,301.51 per ounce as it twice failed to break resistance at $1,317, Reuters technical analyst Wang Tao said.
Meanwhile, silver gained 0.2 percent to $16.48 an ounce, while platinum rose 0.2 percent to $909.65 an ounce, having hit its highest since April 25 in the last session.
Palladium slipped 0.3 percent to $969 an ounce, after hitting its highest since April 27 on Monday.
(Reporting by Apeksha Nair in Bengaluru; Editing by Subhranshu Sahu and Joseph Radford)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Updated Date: May 08, 2018 13:35 PM