Gold prices fell as investors cashed in on recent gains, with a stronger US dollar adding pressure to the precious metal.
SINGAPORE: Gold prices retreated on Tuesday, snapping a four-session winning streak as investors booked profits following a sharp rally. The stronger US dollar also weighed on the precious metal, making it more expensive for holders of other currencies.
Spot gold fell 1.2% to $5,167.28 per ounce by 0538 GMT. This drop came after bullion hit a more than three-week high earlier in the session, having surged over 2% on Monday.
US gold futures for April delivery were down 0.7% at $5,187.40. “We had a meaningful rally yesterday,” said Ilya Spivak, head of global macro at Tastylive.
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“We have a little bit of a digestion here, and I think it’s noteworthy that we don’t see the panic that we saw on Wall Street extend into the Asian market,” he added. Asian stocks stabilised after a wobbly start, with sentiment hurt by a fresh AI-linked selloff on Wall Street and geopolitical tensions.
Market anxiety was also heightened by US trade policy. President Donald Trump warned countries against backing away from recent trade deals with the US.
He stated he would impose much higher duties if they did, following a Supreme Court decision that struck down his emergency tariffs. In monetary policy news, Federal Reserve Governor Christopher Waller said he was open to pausing interest rates in March.
This would depend on strong February jobs data indicating the labour market had “pivoted to a more solid footing” after a weak 2025. Markets currently expect three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool.
Among other precious metals, spot silver fell 0.9% to $87.39 per ounce. Platinum lost 0.5% to $2,142.35 per ounce, while palladium gained 0.4% to $1,750.98.
The Sun Malaysia
