Gold prices turned down as traders took profits after four consecutive rising sessions, driven by uncertainties surrounding US trade policy and escalating tensions in the Middle East.
The precious metal at one point fell by 1.6% before narrowing its decline, as Chinese traders returned to the market on Tuesday after the Lunar New Year holiday. Previously, gold prices had increased by more than 7% in the four consecutive sessions, as investors turned to safe assets amid US President Donald Trump's commitment to impose additional import tariffs and the US confrontation with Iran.
Fluctuations within the 2% range are currently within the normal fluctuation range of the market," said Mr. Song Jiangzhen, a researcher at the Guangdong Southern Gold Market Academy. "Did-term sentiment remains positive, as uncertainty surrounding Iran remains prolonged and the US faces the risk of being isolated by tariff policies," he added.
The market fell into chaos after Mr. Trump announced that he would raise global import tariffs to 15%, following the US Supreme Court's ruling rejecting tariffs that he called' reciprocal'.
Some US trading partners are having difficulty harmonizing new tariffs with previously reached agreements, increasing tensions in already tested relations. A European Union assessment shows that Mr. Trump's new policy will push tariffs on some of the bloc's exports higher than the ceiling allowed in the current trade agreement.
