Gold falls

Gold prices fell on Tuesday, but ‌stayed above a 1-1/2-month low hit in the last session, as markets consolidated while awaiting further developments after US President Donald Trump paused a planned attack against Iran.

Spot gold fell ​0.5 percent to $4,544.17 per ounce by 0820 GMT.

US gold futures for June delivery ​lost 0.2 percent to $4,547.70.

Gold prices fell 2.4 percent on Friday in their biggest one-day decline since March 26 and extended losses on Monday to touch $4,479.54, the lowest ​level since March 30, as mounting inflation fears triggered a rout in the global ​bond market. Bullion recovered to close Monday slightly higher.

“It seems like an oscillation in this kind of inflation fear trade and a sort of digestion of the fireworks from Friday,” ​said Ilya Spivak, head of global macro at Tastylive, adding that markets are ​now awaiting broad sentiment markers such as the minutes of April’s FOMC meeting to be ‌released on Wednesday.

Bonds steadied following a steep selloff after Trump said on Monday he had paused a planned attack against Iran to allow for negotiations to take place on a deal to end the US-Israeli war, after Iran sent a new peace ​proposal to Washington.

Oil ​prices fell more ⁠than 2 percent, easing some inflation fears. Gold is considered a hedge against inflation, though higher interest rates tend to weigh ​on the non-yielding metal.

Kevin Warsh will be sworn in as ​Fed chair ⁠on Friday by Trump, a White House official said on Monday, putting the financier at the helm of the central bank as it grapples with intensifying inflation that ⁠may ​make it hard to push through the interest-rate ​cuts Trump desires.