Gold prices took a hit on Tuesday, dropping from a three-week high as investors cashed in their gains after a 2.5% surge in the previous session. This profit-taking behavior, coupled with a stronger dollar, put downward pressure on the precious metal. Spot gold fell 0.8% to $5,189.99 per ounce, ending a four-day winning streak. U.S. gold futures for April delivery mirrored this decline, dropping 0.3% to $5,210.40. Experts attribute this downturn to a natural market adjustment following a significant rally, noting the absence of widespread panic in Asian markets compared to Wall Street. The Asian stock markets, however, experienced early-day stumbles due to a sell-off on Wall Street the previous night, which heightened uncertainty around President Trump's tariff policies and U.S.-Iran tensions. The stronger dollar made gold, priced in dollars, more expensive for non-U.S. currency holders. President Trump's warning to countries against backing out of recent trade deals, coupled with the Supreme Court's rejection of his emergency tariffs, further complicated the market dynamics. Meanwhile, Federal Reserve Governor Christopher Waller expressed openness to keeping interest rates on hold at the March meeting if February jobs data confirms a stronger labor market. Markets anticipate three 25-basis-point rate cuts this year, according to CME's FedWatch Tool. Silver, platinum, and palladium also experienced price fluctuations, with silver falling 1% to $87.38 per ounce, platinum losing 0.7% to $2,139.25 per ounce, and palladium gaining 0.3% to $1,748.12.
