2018.05.0801:52:00UTC+00Gold Prices Edge Down as Dollar Drifts Near 4-Month High

Gold prices remained subdued on Tuesday as the dollar remained firm near its 2018 high on the relative strength of the U.S. economy.

Spot gold fell 0.1 percent to $1,312.66 per ounce, after closing marginally lower in the previous session.

U.S. gold futures for June delivery were about 0.1 percent lower at $1,313.40 an ounce.

The dollar index wavered near its highest level in more than four months, backed by rising Treasury yields and broadly strong U.S. economic data, leaving its major rivals such as the euro struggling.

The market is awaiting Trump's decision on Iran and the U.S. Consumer Price Index (CPI) data for a move in gold prices, according to a Hong-Kong based trader, adding that the Producer Price Index (PPI) numbers coming out this week might be something to look at to see "if there's more hawkishness going down to the end of the year."

Investors were tempering bets on higher gold prices, said Commerzbank analyst Carsten Fritsch, with speculators cutting their net long positions on Comex gold contracts to the lowest since July 2017 with a "massive reduction" in the last few trading weeks.

Among other precious metals, silver added 0.2 percent at $16.47 per ounce, while platinum climbed 0.2 percent to $909.35 an ounce, having notched its highest since April 25 in the previous session. Palladium fell 0.2 percent to $970 per ounce, after reaching its highest since April 27 on Monday.