Gold prices fall; silver widens losses

Gold bars

Gold prices fell on Tuesday as investors monitored political developments between Washington and Tehran while awaiting the release of the US Federal Reserve's June meeting minutes for fresh clues on the future path of monetary policy under the leadership of new Chair Kevin Warsh.

Meanwhile, the US dollar index, which tracks the greenback against a basket of six major currencies, was little changed at 100.91 after recovering from an intraday low of 100.80.

Gold hit a two-week high on July 6 after a ceasefire agreement eased inflation concerns, while weaker-than-expected US jobs data released last week prompted markets to scale back expectations of a near-term interest rate hike, according to Reuters.

Separately, Hong Kong launched a central clearing and settlement system for gold as part of efforts to strengthen its capital market infrastructure and establish the city as a leading regional and international hub for the precious metal. It also resumed trading in US dollar-denominated gold futures.

*At 8:16 am KSA time.