Gold futures (GC=F) lost 0.6% to $5,192.30 a troy ounce, while spot prices slipped 0.1% to $5,178.22 at the time of writing on Tuesday, leaving the metal on course to end a four session winning streak. The retreat follows a rally that had pushed bullion to a more than three-week high in the previous session.
“Obviously, we had a meaningful rally [in gold] yesterday. 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,” said Ilya Spivak, head of global macro at Tastylive.
Read more: Should you invest in gold?
The pullback comes as markets continue to assess the impact of Trump’s new global 10% tariff, introduced under Section 122 of the 1974 Trade Act, which allows the president to impose such measures for up to 150 days without congressional approval.
5,187.90 -37.70 (-0.72%)
As of 4:30:07 GMT-5. Market open.
Trump adopted the mechanism after the Supreme Court ruled that he had violated an emergency powers law in enacting his so called reciprocal tariffs on imports from countries around the world.
Despite Tuesday’s decline, major investment banks, including BNP Paribas, Deutsche Bank and Goldman Sachs, have projected a renewed advance in gold prices. Analysts point to lingering concerns over the independence of the US Federal Reserve, a broader shift away from sovereign bonds and currencies, and persistent geopolitical risks, particularly in the Middle East.
Oil prices edged higher on Tuesday morning, hovering near seven month highs, as traders weighed potential supply risks amid the prospect of renewed military escalation ahead of further US Iran nuclear talks.
Brent crude (BZ=F) futures rose 0.1% to $71.16 a barrel, while West Texas Intermediate (CL=F) climbed 0.1% to $66.33 at the time of writing.
“At this stage, geopolitics is clearly doing most of the heavy lifting for oil prices, with the current firmness largely driven by anticipation rather than actual supply loss,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. “The risk of possible military escalation in the Middle East is gaining traction, and thus, traders appear to hedge against worst case scenarios.”
Read more: Stocks to watch this week: Nvidia, HSBC, Rolls-Royce, Diageo and Aston Martin
Iran and the US are due to hold a third round of nuclear talks in Geneva on Thursday, a meeting that investors see as pivotal for the trajectory of crude supplies.
“Further talks between the US and Iran [are] planned for Thursday, while Iran’s foreign minister said that there is a chance for a diplomatic solution,” said Warren Patterson and Ewa Manthey of ING in a note.