Gold Sheds Value Amid Dollar Surge and Trade Talks Uncertainty

Gold prices declined from a three-week high as the dollar strengthened and traders engaged in profit-taking. Market participants are uncertain due to U.S tariff plans and nuclear talks between Washington and Tehran. Meanwhile, safe-haven demand persists amid geopolitical tensions, supporting gold prices despite resistance near record highs.

On Tuesday, gold prices slipped from a three-week peak as investors took profits, and the strengthening dollar applied downward pressure. Market watchers are seeking clarity on the U.S.'s trade tariff strategy and the outcome of nuclear negotiations between Washington and Tehran.

The spot price of gold fell 1.6% to $5,148.28 per ounce by 11:17 a.m. ET (1617 GMT), with U.S. gold futures for April delivery decreasing by 1.1% to $5,167.10. The dollar's 0.1% rise has made bullion more costly for other currency holders, prompting price corrections, explained Kitco Metals senior analyst Jim Wyckoff.

The earlier high for gold came after President Trump's announcement of increased tariffs, but the ongoing Iran-U.S. tensions and the tariff uncertainties continue to sustain demand, as Wyckoff noted. However, any push to new highs in gold prices will likely necessitate additional geopolitical catalysts.

(With inputs from agencies.)