Gold prices fell on Tuesday as investors took profits after the precious metal rose more than 2% in the previous session, while pressure from a stronger USD also weighed on the market.
Spot gold prices fell 1% to $5.177.44/ounce in this afternoon's trading session, ending a four-session winning streak and retreating from a three-week high set earlier on the day. US gold futures for April delivery also fell 0.5%, to $5.199.40/ounce.
It is clear that gold prices had a significant increase in yesterday's session. Currently, the market is entering a correction phase and it is noteworthy that we do not see the panic on Wall Street spreading to the Asian market" - Mr. Ilya Spivak, Head of Global Macroeconomics at Tastylive, commented.
Asian stock markets stabilized again after a shaky start, amid a wave of sell-offs related to artificial intelligence stocks on Wall Street shaking investor sentiment. Market sentiment was also negatively affected by increased concerns surrounding US President Donald Trump's tariff policy and geopolitical tensions.
The USD edged up, making gold, which is valued in greenbacks, more expensive for holders of other currencies.
Earlier, on Monday, President Donald Trump warned countries not to withdraw from recent trade agreements negotiated with the US after the Supreme Court rejected his reciprocal tariffs. He said that if that happens, the US will impose much higher tariffs under other trade laws.
In other developments, US Federal Reserve Governor Christopher Waller said he is ready to support keeping interest rates unchanged at the March meeting if February jobs data to be released shows that the labor market has "turned to a more solid state" after a weaker 2025.
According to CME's FedWatch tool, the market is currently expecting the Fed to have three interest rate cuts this year, each of 25 basis points.
On other precious metals markets, spot silver prices remained flat at $88.19/ounce, after hitting a two-week high on Monday. Platinum prices rose slightly 0.1% to $2,154.97/ounce, while palladium rose 0.4% to $1,750.14/ounce.
