Gold prices fell on Tuesday as investors took profits after the bullion rose more than 2% in the previous session, but pressure from a stronger dollar also weighed on the yellow metal.
Spot gold fell 0.8% to $5,189.99 an ounce by 1:25 a.m. Japan time, ending a four-session winning streak and falling from a more than three-week high hit earlier in the day. Bullion rose 2.5% in the last session.
US gold futures for April delivery fell 0.3% to $5,210.40.
“Obviously, there was a meaningful rally (in gold) yesterday. There’s a little bit of digesting going on here, but I think it’s notable that the panic we’ve seen on Wall Street hasn’t spilled over into Asian markets,” said Ilya Spivak, head of global macro at TastyLive, adding that a strong dollar and investor profit-taking were responsible for the bullion decline.
Asian stock markets were sluggish in early trade on Tuesday as Wall Street’s selloff overnight spooked investors as growing uncertainty over US President Donald Trump’s tariff policies and escalating tensions between the US and Iran hurt sentiment.
The dollar strengthened slightly, making USD-priced bullion more expensive for holders of other currencies. President Donald Trump on Monday warned countries not to withdraw from recently negotiated trade deals with the United States after the Supreme Court struck down emergency tariffs, saying they would face much higher tariffs under other trade laws if they did. Elsewhere, Federal Reserve President Christopher Waller said he was open to keeping interest rates on hold at the March meeting if the upcoming February jobs report showed the labor market was “on stronger footing” after the 2025 downturn.
The market currently expects three 25 basis point (bp) rate cuts this year, according to CME’s FedWatch tool.
Spot silver fell 1% to $87.38 an ounce after hitting its highest in more than two weeks on Monday.
Spot platinum fell 0.7% to $2,139.25 an ounce, while palladium rose 0.3% to $1,748.12.
(Reporting by Ishaan Arora; Editing by Subhranshu Sahu and Rashmi Aich)
