Spot gold gave back gains on Tuesday, slipping from a more than three-week high as a firmer U.S. dollar offset support coming from trade-policy uncertainty and mounting tensions involving Washington and Tehran.
Market moves
By 0125 GMT, spot gold had declined 1.5% to $5,150.38 per ounce, after earlier reaching a level that marked a more than three-week peak. U.S. gold futures for April delivery were down 1.1% at $5,170.70.
The dollar strengthened on the session, a dynamic that typically reduces demand for dollar-denominated bullion among investors using other currencies because it raises relative cost.
Drivers of sentiment
Policy comments and trade rhetoric contributed to investor caution. U.S. President Donald Trump warned countries against walking away from recently negotiated trade deals with the United States after the Supreme Court struck down his emergency tariffs, saying that if they did so he would impose much higher duties under different trade laws.
On monetary policy, Federal Reserve Governor Christopher Waller said he was open to leaving interest rates unchanged at the March meeting if forthcoming February jobs data showed the labour market had "pivoted to a more solid footing" after a weak 2025. Market pricing at present reflects expectations for three 25-basis-point rate cuts this year, according to the CME’s FedWatch Tool.
Risk factors and market ripple effects
Asian stock markets started the day on the back foot, sensing risk after a Wall Street selloff overnight. Market sentiment was described as dented by heightened uncertainty over the U.S. tariff stance and by rising geopolitical tensions.
The U.S. State Department said it was withdrawing non-essential government personnel and eligible family members from the U.S. embassy in Beirut, citing growing concerns about the risk of military conflict with Iran. That development added to the backdrop of risk aversion that influenced commodity and equity moves.
Other precious metals
Spot silver fell 3.1% to $85.50 per ounce, retreating from a more than two-week high it had reached on Monday. Spot platinum eased 2.9% to $2,092.31 per ounce, while palladium declined 2.1% to $1,706.50.
Data calendar
Market participants are watching a modest slate of data for further direction: France releases business climate manufacturing and overall figures at 0745 GMT, and U.S. consumer confidence for February is due at 1500 GMT.
With the dollar exerting pressure and a mix of trade-policy uncertainty, central bank commentary and regional security concerns in play, bullion and related markets remain sensitive to incoming data and policy signals in the near term.