Gold Prices Dip as Trump Pauses Iran Strikes

Gold prices declined on Tuesday as investors engaged in profit-taking following a rally of more than 1% in the previous session. Spot gold fell 0.6% to $4,114.48 per ounce, though US gold futures for December delivery rose slightly by 0.2% to $4,123.50. Market participants are currently awaiting the US consumer price index and producer price index reports to determine the Federal Reserve's next monetary policy moves.

Donald Trump, President of the United States, announced plans to refrain from launching further military strikes against Iran for the time being. This decision followed appeals from regional leaders, including the prime minister of Qatar, during talks held at the White House. Oil prices also declined on Tuesday, extending losses from the previous session.

Economic pressure on gold is mounting as traders estimate an 84% probability of a December interest rate hike via the CME FedWatch tool. Such a hike increases the opportunity cost of holding non-yielding assets. Tom Barkin, President of the Richmond Federal Reserve, noted that the central bank should move its monetary policy "with care".