Gold Prices Retreat as US Dollar Strengthens 📈

Global gold prices eased from a three-week high on Tuesday as a firmer US dollar offset safe-haven demand stemming from US-Iran tensions and tariff uncertainties. • Overall Market Figures: • Spot Gold: Fell 1.5% to US$ 5,150.38 per ounce. • US Gold Futures: Dropped 1.1% to US$ 5,170.70. • Spot Silver: Slid 3.1% to US$ 85.50 per ounce. • Platinum & Palladium: Decreased by 2.9% and 2.1% respectively. • Local Context (Sri Lanka): Based on Colombo's Sea Street market data, local gold prices remain highly sensitive to these global fluctuations. Following a recent volatility streak, 24-carat gold was recently recorded at approximately Rs. 451,500 per sovereign, while 22-carat gold stood near Rs. 413,900. • Economic Drivers: • Currency Impact: A stronger US dollar makes bullion more expensive for holders of other currencies, including the Sri Lankan Rupee. • Monetary Policy: Markets are monitoring potential US Federal Reserve rate pauses, which influence the opportunity cost of holding non-yielding assets like gold. • Geopolitical Risk: Tensions in Beirut and US-Iran relations provide a floor for prices despite the dollar's strength. Provisional data based on early morning trading sessions.