Gold experiences four consecutive gains before profit-taking; tariff tensions still persist

Investing.com - On Tuesday during Asian trading hours, gold prices retreated from a three-week high, ending a four-day winning streak as investors took profits, while the dollar strengthened and concerns over U.S. trade tariffs reignited.

As of 21:20 Eastern Time (02:20 Beijing Time), spot gold fell 1.1% to $5,172.42 per ounce, after reaching its highest level since late January earlier in the session. U.S. gold futures declined 0.6% to $5,193.44 per ounce.

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Due to renewed uncertainty in U.S. trade policy, gold surged 2.5% in the previous trading day.

On Tuesday, silver prices fell nearly 2% to $86.55 per ounce after four consecutive days of gains.

The U.S. dollar index, which recovered earlier in the week and was essentially flat on Monday, edged up 0.1% on Tuesday. A stronger dollar increases the cost for investors holding other currencies to buy gold.

Last week, the U.S. Supreme Court rejected former President Trump’s earlier tariffs, but the government quickly announced new tariffs of up to 15%, reigniting concerns over escalating trade disputes.

Trump warned on Monday that countries “playing games” with U.S. trade agreements will face higher tariffs, indicating that despite legal setbacks, there is still room for further action.

Geopolitical tensions remain a focus. The U.S. and Iran are scheduled to hold their third round of nuclear talks in Geneva on Thursday, despite ongoing military pressure and regional tensions.

Although gold prices retreated on Tuesday, the market’s underlying tone remains supported due to persistent trade uncertainties and geopolitical risks.

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