Gold slips from 3 week high as investors book profits and dollar strengthens

Gold prices retreated on Tuesday as traders locked in profits following a sharp rally in the previous session, while a firmer US dollar added further pressure on the precious metal.

Spot gold fell 1 percent to $5,179.77 per ounce by mid-morning trading, snapping a four-session winning streak and pulling back from a more than three-week high reached earlier in the day. US gold futures for April delivery declined 0.5 percent to $5,199.40.

Analysts said the decline reflected consolidation after Monday’s gains of more than 2 percent. “We had a meaningful rally in gold yesterday. Now we’re seeing some digestion,” said Ilya Spivak, head of global macro at Tastylive, noting that market volatility seen on Wall Street had not fully spilled over into Asian trading.

Asian equities steadied after a shaky start, following an AI-related selloff in US markets that unsettled investors. Sentiment has also been weighed down by uncertainty surrounding President Donald Trump’s tariff policy and ongoing geopolitical tensions.

The US dollar edged higher, making dollar-denominated gold more expensive for buyers using other currencies, which further dampened demand.

On the policy front, Trump warned that countries should not retreat from recently negotiated trade agreements after the Supreme Court struck down his emergency tariffs, saying higher duties could be imposed under alternative trade laws.

Meanwhile, Federal Reserve Governor Christopher Waller indicated he would be open to keeping interest rates unchanged at the March meeting if upcoming labour market data showed signs of stabilization. Market expectations currently point to three quarter-percentage-point rate cuts this year, according to CME’s FedWatch Tool.

Among other precious metals, spot silver held steady at $88.19 per ounce after reaching a more than two-week high on Monday. Platinum rose 0.1 percent to $2,154.97, while palladium gained 0.4 percent to $1,750.14.