Global gold markets moved lower on Tuesday as investors reacted to easing geopolitical tensions and shifting inflation expectations. Although prices remained above recent lows, the market recorded its biggest daily decline since March after heavy volatility across financial markets.
Spot gold fell by 0.5 percent during early trading, reaching $4,543.49 per ounce. Prices stayed above Monday’s low of $4,479.54, which marked the weakest level since March 30. US gold futures for June delivery also declined by 0.2 percent to $4,546.90 per ounce.
The latest gold price decline followed a sharp drop last Friday, when bullion lost 2.4 percent in a single session. Analysts described that fall as the largest one-day decline in nearly two months. Gold extended losses on Monday before recovering slightly by the end of trading.
Market analysts linked the recent movement to changing investor sentiment surrounding inflation and geopolitical risks. Concerns over global inflation previously pushed investors toward safe-haven assets such as gold. However, easing fears in energy markets reduced some demand for precious metals this week.
Investor attention also shifted after US President Donald Trump paused a planned military strike against Iran. Reports indicated that Washington decided to allow more time for negotiations aimed at ending the conflict involving the United States, Israel, and Iran.
The announcement helped stabilize global bond markets after recent heavy selling pressure. Oil prices also dropped by more than two percent, easing concerns that higher energy costs could worsen inflation worldwide.
Analyst Ilya Spivak said markets are currently adjusting to recent volatility and reassessing inflation risks. He explained that investors now await broader economic signals, including the upcoming release of minutes from the Federal Open Market Committee meeting scheduled for Wednesday.
Meanwhile, expectations surrounding US monetary policy continue influencing gold prices. Investors are closely watching the Federal Reserve as inflation pressures remain elevated across major economies. Higher interest rates usually weaken gold demand because the metal does not generate interest income.
Reports also confirmed that financier Kevin Warsh will officially take office as Federal Reserve chief later this week. Analysts believe his leadership may shape future interest-rate decisions during a period of rising inflation and economic uncertainty.
Other precious metals also recorded losses during Tuesday trading. Spot silver fell by two percent to $76.09 per ounce. Platinum declined by 0.7 percent to $1,965.40, while palladium dropped 1.5 percent.
Despite the recent gold price decline, analysts expect markets to remain highly sensitive to geopolitical developments, inflation data, and central bank decisions in the coming weeks.