New York, June 4 (IANS): Spot gold prices in the benchmark US market declined on Tuesday after an initial surge following the Federal Reserve Chairman Jerome Powell's "dovish" statement on the US-China trade tensions.

Around 11.17 a.m. New York local time, the spot gold prices traded at $1,320.50 per ounce, lower by 0.32 per cent from its previous close, according to data from Kitco.com.

Earlier in the day, it had touched $1,329.70 per ounce, the highest price currently of any precious metal.

US Federal Reserve Chairman Powell, in his opening remarks at a monetary policy conference in Chicago, said: "We do not know how or when these issues will be resolved." This very statement was perceived by the investors as "dovish", according to analysts.

Powell was quoted in the US media as saying: "We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labour market and inflation near our symmetric 2 percent objective."

Gold prices, off-late firmed up on the back of the ongoing US-China trade tensions which has helped the yellow metal regain the status of the most expensive precious metal on Monday.

On Monday, gold prices rose more than 1.5 per cent on Monday to its highest level in more than three months of $1,325.72 per ounce. Analysts said that this upward movement happened on concerns that US-Chinese trade tensions and Washington's threat of tariffs on Mexico would hurt the global economy.

Palladium, now the most expensive precious metal, after decline in gold prices, is currently trading at $1,323 per ounce, higher by 1.07 per cent from the previous close.

Another precious metal, platinum's spot price traded around $818 per ounce, lower by 0.24 per cent from the previous close.