Investing.com - Gold prices came off recent gains in Asia on Tuesday with investors alert to possible comments by U.S. Vice President Mike Pence who is scheduled in Tokyo for talks with Japan's leadership, including on continued tension on the Korean peninsula.
Gold for June delivery on the Comex division of the New York Mercantile Exchange fell 0.61% to $1,284.00 a troy ounce. Copepr futures on the Comex were last quoted down 0.39% to $2.587 a pound
Overnight, gold prices traded higher on Monday, as investors continued to back the precious metal amid geopolitical concerns while downbeat economic data lifted sentiment.
Fresh off the back of its best week since June, Gold futures made a bright start to the week, notching a five month high earlier during the session, as investors continued to pour into safe assets such as gold amid rising geopolitical concerns.
Geopolitical tensions over North Korea escalated, after North Korea attempted to fire a ballistic missile on Sunday but it blew up almost immediately. North Korea continued to conduct missile tests despite renewed efforts by China to persuade North Korea to change course.
Pence responded to North Korea’s failed missile attempt Monday, warning that “the era of strategic patience” with North Korea “is over”.
Meanwhile, weaker than expected economic data briefly weighed on the dollar, after New York area manufacturing slowed by more than expected in April.
The Empire State manufacturing survey fell to a reading of 5.2 April, well below consensus expectations for a reading of 15.
Gold prices pulled back from a five month high later during session, after the dollar bounced off session lows.
Dollar-denominated gold is sensitive to moves in the dollar – A rise in the dollar makes dollar-denominated assets such as gold cheaper for holders of foreign currency and thus, increases demand.
The strong rally in gold prices during recent trading session came against expectations that the yellow metal was set for period of consolidation.