Gold prices fell more than 1% on Tuesday, pausing from a three-week high hit in early trading, as a strong dollar and profit-taking weighed on prices as investors awaited clarity on U.S. President Donald Trump’s tariff plans.
Spot gold fell 1.2% to $5,170.89 an ounce by 9:56 a.m. Japan time, ending a four-session winning streak. US gold futures for April delivery fell 0.7% to $5,190.20.
The US dollar rose 0.1%, making US dollar-priced bullion more expensive for holders of other currencies.
“There was some profit-taking as prices surged to highs near $5,249 an ounce,” said OANDA Market Pulse analyst Zane Vawda. “Another factor was probably the announcement of new tariffs by the Trump administration, which gave some clarity on the tariff issue in the near term.”
Gold, a traditional safe-haven asset, tends to benefit in times of geopolitical and economic uncertainty.
The U.S. Supreme Court ruled Friday that President Trump exceeded his authority by using the 1977 Emergency Act to impose tariffs, but hours later, Trump invoked another law to impose temporary 15% tariffs on U.S. imports.
President Trump on Monday warned countries not to back down from recently negotiated trade deals, saying he would impose much higher tariffs under different trade laws.
Meanwhile, Omani Foreign Minister Badr al-Busaidi announced on Sunday that Iran and the United States will hold a third round of nuclear talks in Geneva on Thursday.
“The broader story (for gold) remains tilted to the upside. If we see further dollar weakness or escalation in the Middle East (tensions), a reversal to the $5,210 level and possible new highs above the $5,249 handle are well within reach,” Bauda said.
Spot silver fell 0.2% to $88.08 an ounce after hitting its highest in more than two weeks on Monday.
Spot platinum rose 0.5% to $2,163.60 an ounce, and palladium rose 0.9% to $1,759.06.
(Reporting by Noel John in Bengaluru; Editing by Susan Fenton and Louise Heavens)
