- US pushes countries for best trade offers by Wednesday
- Trump and Xi will likely speak this week, White House says
- OECD trims global outlook as Trump trade war hits US growth
June 3 (Reuters) - Gold pulled back on Tuesday after nearing a four-week high earlier in the session, as a slight rebound in the dollar and profit-taking added pressure, while investors remained cautious amid erratic U.S. trade policies.
Spot gold fell 0.5% to $3,361.26 an ounce as of 0842 GMT, after hitting its highest since May 8 earlier in the session. U.S. gold futures eased 0.3% to $3,386.20.
The dollar slightly rose from an over-a-month low hit earlier in the session, making gold costlier for foreign buyers.
"This move (in gold) is bolstered by a weaker dollar and renewed demand for alternative investments amid rising geopolitical and tariff tensions," said Ole Hansen, head of commodity strategy at Saxo Bank.
"These developments are the main reason why we are seeing some light profit-taking following yesterday's strong gains."
Investors will be closely watching a likely call this week between U.S. President Donald Trump and Chinese leader Xi Jinping, confirmed by White House Press Secretary Karoline Leavitt, just days after Trump accused China of breaching an agreement to reduce tariffs and trade restrictions.
The European Commission said Monday it would push the U.S. to reduce or eliminate tariffs, despite Trump's plan to double steel and aluminium duties to 50% by Wednesday.
Meanwhile, the Trump administration is urging countries to submit their best trade offers by Wednesday, aiming to accelerate talks ahead of a five-week deadline, according to a draft letter seen by Reuters.
The OECD on Tuesday said the global economy is on course to slow from 3.3% last year to 2.9% in 2025 and 2026, trimming March estimates for growth of 3.1% this year and 3.0% next year.
Investors' focus this week will also be on U.S. non-farm payrolls due on Friday and speeches from a slew of Federal Reserve policymakers for clues on the interest rate trajectory.
Zero-yielding bullion tends to do well in a low-interest rate environment.
Spot silver fell 1.6% to $34.25 an ounce, platinum lost 0.4% to $1,058.85 and palladium was steady at$989.00.
Reporting by Anushree Mukherjee in Bengaluru; editing by David Evans
Source: Reuters