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Investing.com-- Gold prices ticked higher in Asian trade on Wednesday after sharp losses in the prior session, as a weaker U.S. dollar offered some support, even as a ceasefire between Israel and Iran dampened demand for safe-haven assets.
Spot Gold rose 0.2% to $3,329.93 an ounce, while Gold Futures for August gained 0.3% to $3,344.70/oz by 02:16 ET (06:16 GMT).
Bullion fell over 1% on Tuesday after President Donald Trump announced that a ceasefire between Iran and Israel had come into effect.
Israel-Iran truce pressures gold
President Trump, on late Monday, declared a multi‑stage ceasefire between Israel and Iran, and urged that neither party should violate it.
Despite the announcement of a ceasefire between Israel and Iran, concerns remained over how long the truce would hold. Just hours after declaring the agreement, President Donald Trump took to social media to accuse both sides of failing to uphold their commitments.
Gold, traditionally viewed as a hedge against geopolitical risk and uncertainty, has come under pressure as the ceasefire appears to be holding.
The metal was supported by a weaker dollar and uncertainty over the ceasefire. Media reports on Tuesday showed that U.S. strikes failed to destroy the Iranian nuclear program, but only delayed it by a few months.
The US Dollar Index edged down 0.1% in Asia hours, hovering near a one-week low.
Federal Reserve Chair Powell said in testimony before Congress that many paths were possible for monetary policy, and the central bank needed more time to see if rising tariffs drive inflation higher.
Metal markets rise on weak dollar
Broader metal markets rose as a weaker dollar made the commodity cheaper for foreign buyers. However, gains were limited as a broader risk-on mood weighed on precious metals.
Silver Futures rose 0.5% to $35.928 per ounce, while Platinum Futures were largely muted at $1,318.15/oz.
Meanwhile, benchmark Copper Futures on the London Metal Exchange rose 0.5% to $9,723.35 a ton, while U.S. Copper Futures were unchanged at $4.9015 a pound.