Gold Prices Decline Amid Strong Dollar and Profit Taking

Gold prices fell over 1% as the USD strengthened, impacting dollar-denominated bullion. Investors were cautious ahead of U.S. tariff announcements by President Trump. Gold, typically a hedge during uncertainties, saw declines amid new tariffs and ongoing U.S.-Iran talks. The trend remains positive if the dollar weakens.

On Tuesday, gold prices experienced a significant decline, dropping over 1% from the highs reached earlier in the session. This downward shift was primarily due to a stronger U.S. dollar and profit-taking activities, as investors awaited details on President Donald Trump's forthcoming tariff plans.

Spot gold decreased by 1.1% to $5,174.68 per ounce by 1158 GMT, ending a four-day winning streak. U.S. gold futures for April delivery also saw a downward adjustment, falling by 0.6% to $5,193.80. The greenback's rise of 0.2% impacted those holding other currencies with gold investments, noted MarketPulse analyst Zain Vawda.

The U.S. economy's dynamics became more intricate with the Supreme Court's recent ruling against Trump's 1977 law use for tariff imposition. Yet, the administration still imposed a new 10% tariff on non-exempt goods. Continuous geopolitical issues, including U.S.–Iran nuclear discussions, also influence precious metals' trends.

(With inputs from agencies.)