Gold Pulls Back as Profit-Taking and Stronger Dollar Halt Bullion Rally

Gold prices eased on Tuesday as investors locked in profits after the precious metal surged more than 2% in the previous session, while a firmer U.S. dollar added further pressure to prices.

Spot gold slipped 1% to $5,179.77 per ounce by 07:35 GMT, snapping a four-session winning streak and retreating from a more than three-week high reached earlier in the day. U.S. gold futures for April delivery also moved lower, down 0.5% at $5,199.40 per ounce.

Market participants largely viewed the pullback as a period of consolidation following a sharp rally. “Obviously, we had a meaningful rally in gold yesterday. We have a little bit of 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,” said Ilya Spivak, head of global macro at Tastylive.

Asian equity markets steadied after a shaky open, following a renewed selloff in U.S. stocks driven by concerns over artificial intelligence disruption. Investor sentiment was also weighed down by ongoing uncertainty surrounding U.S. President Donald Trump’s trade policy and broader geopolitical tensions.

The U.S. dollar edged higher, making dollar-denominated bullion more expensive for buyers using other currencies and further capping gold’s upside.

Trade policy remained a key source of uncertainty. On Monday, President Trump warned countries against backing away from recently negotiated trade agreements with the United States, following a Supreme Court ruling that struck down his emergency tariff measures. Trump said nations that retreat from deals would face significantly higher tariffs imposed under alternative trade laws.

On the monetary policy front, Federal Reserve Governor Christopher Waller said he would be open to keeping interest rates unchanged at the Fed’s March meeting if upcoming February employment data show that the labor market has “pivoted to a more solid footing” after weakness seen in 2025.

Despite the near-term pullback in gold, markets continue to price in a relatively dovish outlook for U.S. monetary policy. According to CME’s FedWatch Tool, investors currently expect three 25-basis-point interest rate cuts this year.

Elsewhere in the precious metals market, spot silver was little changed at $88.19 per ounce after touching a more than two-week high on Monday. Spot platinum edged up 0.1% to $2,154.97 per ounce, while palladium gained 0.4% to $1,750.14 per ounce.

Overall, gold’s decline appeared more reflective of profit-taking and currency dynamics than a shift in the broader bullish narrative, with geopolitical risks and interest rate expectations still providing underlying support.