Gold Slips as Tech Stocks Rally, Rocket Lab Surges on Deal

Gold prices edged lower on Tuesday as a rally in tech and industrial stocks boosted risk appetite, with investors looking ahead to a strong close to the second quarter. The precious metal slipped as equities gained, reflecting a shift in sentiment away from safe-haven assets. The decline was also influenced by a stronger U.S. dollar, as the DXY index rose, reinforcing the typical inverse correlation between gold and the greenback. Meanwhile, real U.S. 10-year yields remained elevated, adding pressure on non-yielding bullion by increasing the opportunity cost of holding gold.

The move lower in gold came as major indexes advanced, led by a surge in Rocket Lab shares after the company announced an acquisition. The tech-heavy Nasdaq and the Dow Jones Industrial Average both posted gains, while the S&P 500 also rose. The positive equity market tone reduced demand for gold as a hedge, with investors favoring riskier assets. On NowPrice, live gold prices and charts show the metal trading near recent levels, with the decline reflecting the inverse correlation with equities. However, underlying demand from central banks, which have been net buyers since 2022 as part of a global de-dollarization trend, continues to provide a floor for prices. Physical demand from jewelry and investment sectors remains mixed, with high prices dampening retail buying in key markets like India and China, while ETF flows into funds like GLD and IAU have been volatile.

Looking ahead, traders will focus on upcoming economic data, including jobs reports and inflation figures, which could influence the Federal Reserve's policy path. A strong quarter close may sustain risk-on sentiment, but any signs of economic weakness could revive gold's safe-haven appeal. Key support levels for gold are being monitored, while resistance remains at recent highs. The interplay between equity market momentum and macroeconomic data will likely determine gold's direction in the coming sessions. Additionally, the COMEX-LBMA spread will be watched for signs of physical delivery stress, which could signal supply tightness and support prices.