BY COMFORT OGBONNA
Gold prices declined on Tuesday as investors moved to secure profits following a sharp rally in the previous session, while a strengthening U.S. dollar added further pressure on the precious metal.
Spot gold dropped 1.2% to $5,167.28 per ounce as of 0538 GMT, ending a four-session winning streak. Earlier in the day, bullion had climbed to its highest level in more than three weeks before reversing course. The pullback comes after gold surged more than 2% in the prior session, prompting traders to reassess positions and book gains.
U.S. gold futures for April delivery also edged lower, falling 0.7% to $5,187.40 per ounce. The decline in futures mirrored movements in the spot market, reflecting cautious sentiment among investors after the recent rally.
Market analysts said the drop appeared to be driven more by short-term positioning rather than a shift in the broader outlook for gold. Ilya Spivak, head of global macro at Tastylive, noted that Monday’s rally had been significant, and Tuesday’s move suggested a period of consolidation rather than panic selling. He pointed out that while Wall Street experienced volatility linked to artificial intelligence-related stocks, that sense of urgency did not spill over into Asian markets to the same extent.
Asian equities steadied after a shaky start to the session. Investors had been rattled by a renewed selloff in U.S. technology shares tied to artificial intelligence developments. Market sentiment was further weighed down by lingering uncertainty over trade policy and geopolitical tensions.
The U.S. dollar strengthened modestly during the session, making gold — which is priced in dollars — more expensive for holders of other currencies. A stronger greenback typically dampens demand for bullion in international markets, as it raises the effective purchase cost for overseas buyers.
Trade policy developments also remained in focus. U.S. President Donald Trump warned countries against withdrawing from recently negotiated trade agreements with the United States after the U.S. Supreme Court struck down his emergency tariffs. He cautioned that nations stepping back from deals could face significantly higher duties imposed under alternative trade laws. The remarks added another layer of uncertainty to global markets already grappling with shifting tariff policies.
Meanwhile, monetary policy expectations continued to influence investor positioning in precious metals. Federal Reserve Governor Christopher Waller said he would be open to keeping interest rates unchanged at the March meeting if upcoming February employment data showed that the labor market had stabilized after earlier signs of weakness in 2025. His comments suggested policymakers remain data-dependent as they assess the economic outlook.
Market participants are currently pricing in three quarter-point interest rate cuts later this year, according to the CME FedWatch Tool. Lower interest rates tend to support gold prices because the metal does not offer yield, making it more attractive when borrowing costs decline and returns on fixed-income assets fall.
Other precious metals also saw mixed movements. Spot silver slipped 0.9% to $87.39 per ounce after reaching a more than two-week high on Monday. Platinum declined 0.5% to $2,142.35 per ounce, while palladium rose 0.4% to $1,750.98, bucking the broader downward trend in the metals complex.
Despite Tuesday’s retreat, gold remains supported by ongoing geopolitical uncertainty, trade tensions, and expectations of eventual monetary easing. Analysts say the metal’s longer-term outlook will likely depend on upcoming economic data, currency movements, and clarity on global trade policies in the weeks ahead.
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