Gold slips on profit-taking after rally to over three-month high
GLD•Other precious metals also decline
Spot silver XAG= fell 1.4% to $68.00 per ounce, platinum XPT= dropped 1.5% to $1,848.17, and palladium XPD= was down 2.4% at $1,324.56.
Gold eases after reaching three-month high
Gold eased on Tuesday after touching a more than three-month high earlier in the session, as profit-taking and a firmer dollar curbed gains ahead of U.S. inflation data and remarks from Federal Reserve Chairman Kevin Warsh this week.
Spot gold XAU= was down 0.4% at $4,634.76 per ounce by 0937 GMT, after hitting its highest level since May 14. U.S. gold futures GCcv1 eased 0.2% to $4,689.70.
ETF inflows and geopolitical tensions support demand
Meanwhile, gold-backed ETFs attracted inflows of 46.7 metric tons ($6.4 billion) last week, the largest weekly demand in 10 months, according to the World Gold Council.
On the geopolitical front, Iran vowed to retaliate against expanded U.S. economic sanctions that the Americans said would cut off Iran's economic lifeline.
Dollar rebound and rate expectations weigh on bullion
"Gold's move today is primarily due to profit taking, with the dollar recouping some of last week's losses that followed the buyback announcement," Saxo Bank analyst Ole Hansen said, referring to the U.S. Treasury Department's decision to double the size of liquidity support buyback operations for longer-dated notes and bonds.
"The reasons why investors are falling back in love with gold again have not gone away and will likely continue to support in the coming months," Hansen added.
After falling to a more than three-month low after the Treasury buyback announcement, the dollar regained some strength on Tuesday amid a revived debasement trade, making greenback-priced bullion more expensive for buyers overseas.
