Gold prices inched down in European trade on Tuesday, holding near the prior session’s seven-week low amid fading demand for safe-haven assets.
Comex gold futures slipped around $1.00, or about 0.1%, to $1,226.50 a troy ounce by 2:50AM ET (06:50GMT). Meanwhile, spot gold was little changed at $1,225.90.
The yellow metal hit its lowest since March 16 at $1,221.00 on Monday as safe-haven demand ebbed after market-friendly centrist Emmanuel Macron beat far-rightist Marine Le Pen to clinch the French presidency.
The victory for Macron signaled that political risks in France and across Europe are receding, in the wake of the populist surge which resulted in Brexit and propelled Donald Trump to the White House, dampening demand for the yellow metal, which is often used as a hedge in times of political uncertainty.
Meanwhile, investors awaited fresh signals on whether the Federal Reserve will raise interest rates next month.
There are a few economic reports Tuesday, including the NFIB small business survey at 6:00AM ET (10:00GMT), followed by JOLTS job opening data and wholesale trade for March both due at 10:00AM ET (14:00GMT).
Markets are pricing in around an 82% chance of a hike at the Fed’s June meeting, according to Investing.com’s Fed Rate Monitor Tool.
The metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, inched up to 99.15 in London morning trade.
The U.S. 10-Year bond yield traded at 2.392%, up 1.8 basis points.
Also on the Comex, silver futures held steady at $16.25 a troy ounce. It fell to an overnight low of $16.14, a level not seen since January 3.
Elsewhere in metals trading, platinum shed 0.7% to $913.60, while palladium tacked on 0.1% to $806.60 an ounce.
Copper futures dipped 0.2 cents to $2.492 a pound.
