Gold turned positive on Tuesday as some investors held onto positions, while a sharper risk appetite benefited cyclical assets at bullion's expense as the US dollar's recovery from three-week lows versus the euro added pressure on the metal. Gold rallied to a 2-1/2 month high last week as heightened tensions over Syria and US sanctions on Russia sparked a drop in equities and ratcheted up interest in nominally defensive assets. Tensions have since eased, though concerns over Russia sanctions plans still linger.
Spot gold gained 0.06 percent at $1,346.40 an ounce by 1:37 pm EDT (1737 GMT), while US gold futures for June delivery settled down $1.20, or 0.1 percent, at $1,349.50 per ounce. "People are reluctant to get out of their gold positions. Although the tensions have eased recently, I don't think they're ready to let go of their gold completely," said Ryan McKay, TD Securities commodities strategist.
A gradual return of risk appetite lifted shares, with European stocks climbing and Wall Street stocks higher after strong earnings from Netflix, Goldman Sachs and health majors. "The market's waiting to see what the Fed is going to do; if they're going to have the data to move rates," said Walter Pehowich, Dillon Gage executive vice president of investment services.
Meanwhile, silver increased 0.9 percent to $16.75 an ounce, while platinum gained 1.3 percent at $935.70, after earlier touching a six-day high of $936.90. Palladium rose 1.3 percent to $1,014.70 an ounce after hitting its strongest since March 1 at $1,015.30. It rallied nearly 10 percent last week, the biggest weekly gain since January 2017, on fears that US sanctions on Russia could hurt supply of the autocatalyst metal.