Gold prices decline as the dollar rises.. US-China trade tensions determine market direction.

Gold markets witnessed a noticeable decline today, Tuesday, June 3, as the US dollar partially recovered from its six-week low. The price of gold in spot trading dropped by 0.6% to reach $3358.70 per ounce after touching its highest levels since May 8 during the session.

Similarly, gold futures in the United States fell by 0.3% to $3359.90 per ounce, following a strong 2.7% gain the day before, marking its largest daily increase in over three weeks.

Analysts attributed this decline to the current inverse relationship between gold and the dollar. Brian Lan, the General Manager of GoldSilver Central in Singapore, commented: "As the dollar recovered slightly, gold fell, indicating an inverse relationship between them at this stage," while also pointing out the continued impact of global trade developments on gold prices.

These movements come amid escalating trade tensions between Washington and Beijing, with the White House announcing the possibility of a discussion this week between US President Donald Trump and his Chinese counterpart Xi Jinping, following Trump's accusations of China violating the trade agreement between the two countries.

In another development, the United States is preparing to increase tariffs on steel and aluminum imports to 50% starting Wednesday, the final deadline set by the Trump administration to receive final proposals from countries in trade negotiations.

On the geopolitical front, Russian media reports indicated that Moscow informed Kiev during peace talks on Monday that it will not agree to end the war unless Ukraine concedes new parts of its territories and accepts restrictions on the size of its army.

Regarding other precious metals, silver recorded a 2.1% decline to settle at $34.07 per ounce, while platinum remained stable at $1062.46, and palladium slightly increased by 0.1% to reach $990.26 per ounce.