After four straight days of gains, gold prices fell from a three-week high in Asian trading on Tuesday as investors grabbed profits and the US dollar strengthened amid fresh concerns about US trade tariffs.
After rising to its highest level since late January in early trade, spot gold fell 1.1% to $5,172.42 an ounce by 21:20 ET (02:20 GMT). U.S. gold futures dropped to $5,193.44/oz, a 0.6% decline.
The previous session saw a 2.5% increase in the yellow metal as trade policy concerns in the United States reappeared. After four sessions of increases, silver prices fell nearly 2% to $86.55/oz on Tuesday.
The US Dollar Index closed mostly steady on Monday, gaining 0.1% after covering losses. For holders of foreign currencies, a higher dollar raises the price of metal.
The administration quickly announced fresh duties of up to 15% after the U.S. Supreme Court last week overturned President Donald Trump’s earlier sweeping tariffs, reigniting concerns about growing trade wars.
Despite the judicial setback, Trump threatened to impose harsher tariffs on nations who “play games” with U.S. trade accords on Monday.
The spotlight also remained on geopolitical issues. On Thursday, despite ongoing regional tensions and military pressure, the United States and Iran will begin a third round of nuclear negotiations in Geneva.
Geopolitical risk and ongoing trade uncertainties sustained the bullion markets’ underlying tone despite Tuesday’s decline.
