• Gold prices dipped on Wednesday as safe-haven buying failed to kick in after the United States withdrew from the Iranian nuclear accord, and as rising U.S. Treasury yields added pressure.
• Spot gold lost 0.1 percent at $1,312.89 an ounce by 1:33 p.m. EDT (1733 GMT), after touching a one-week low of $1,304.11.
U.S. gold futures for June delivery settled down 70 cents, or 0.05 percent, at $1,313 per ounce.
• Gold prices often rise during times of political turmoil, as bullion is widely considered a safe-haven asset alongside the dollar and the Japanese yen.
Also weighing on gold, geopolitical tensions in the Korean peninsula eased further as North Korea freed three American detainees ahead of talks between Trump and North Korea leader Kim Jong Un.
• "The fact that the cat is out of the bag and we have the announcement (on Iran) - that has removed some of the geopolitical support for gold," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
The dollar index rose to a 2018 peak, then went into negative territory after U.S. producer prices rose less than expected.
Yields on the benchmark 10-year Treasury note breached 3 percent. A series of U.S. bond auctions this week could boost yields further, which could pressure gold enough to challenge the $1,300 support area, Hansen added.
• The prospect of more U.S. interest rate increases will also weigh on gold, Standard Chartered analyst Suki Cooper said.
"We continue to expect prices to test the downside in the lead-up to the June FOMC meeting as the market re-prices the Fed hiking trajectory," she said in a note.
• Spot gold may revisit its May 1 low of $1,301.51 per ounce as it failed three times to break resistance at $1,317, said Reuters technical analyst Wang Tao.
• However, a four-year high in oil prices may stoke inflation.
"If we start to see any sign that inflation will spike, that'll drive gold higher," said Chris Gaffney, president of world markets at EverBank.
• Silver rose 0.6 percent at $16.53 an ounce. During the session it reached $16.62, a two-week high. Platinum rose 0.8 percent to $912.74 an ounce. Palladium added 0.6 percent to $975.50. It hit $982.60, close to a two-week high.
Reference: Reuters
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