NEW YORK: Gold prices fell more than 1percent on Tuesday, easing from a three-week high hit earlier in the session, as a stronger dollar and profit taking weighed on prices while investors awaited clarity on US President Donald Trump’s tariff plans.
Spot gold dropped 1.1percent to USD5,174.68 per ounce by 1158 GMT, snapping a four-session winning streak. US gold futures for April delivery were down 0.6percent at USD5,193.80.
The US dollar rose 0.2percent, making greenback-priced bullion more expensive for holders of other currencies. “There was some profit taking as prices spiked to highs of around USD5,249/oz,” said Zain Vawda, analyst at MarketPulse by OANDA.
“The other factor was likely the announcement of a new tariff by the Trump administration which has provided some near-term clarity on the tariff question.”
Gold, a traditional safe-haven asset, tends to benefit in times of geopolitical and economic uncertainty.
The US Supreme Court ruled on Friday that Trump’s use of a 1977 emergency law to impose tariffs exceeded his authority, but Washington imposed a new tariff from Tuesday of 10percent on all goods not covered by exemptions, said the US Customs and Border Protection.
Trump on Monday warned countries against backing away from recently negotiated trade deals, saying that he would hit them with much higher duties under different trade laws.
Meanwhile, Iran and the US will hold a third round of nuclear talks on Thursday in Geneva, Oman’s Foreign Minister Badr Albusaidi said on Sunday.
“The broader narrative (for gold) remains skewed to the upside. If we see further dollar weakness or an escalation in Middle East (tensions), a reversal toward the USD5,210 level and potentially fresh highs above the USD5,249 handle is well within reach,” Vawda said.
Spot silver fell 0.1percent to USD88.14 per ounce, after hitting a more than two-week high on Monday. Spot platinum gained 0.3percent to USD2,160.69 per ounce, and palladium also rose 0.3percent, to USD1,748.50.
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