Gold prices fell 1% to around $5,170 per ounce on Tuesday, ending a four-session winning streak, as investors booked profits amid renewed trade uncertainty and geopolitical tensions.
The decline comes as President Trump’s new 10% global tariff officially takes effect, signaling a revival of his trade agenda after the U.S. Supreme Court blocked many levies imposed last year. Reports indicate the administration is preparing a formal order that could increase the rate to 15%, heightening uncertainty in global markets.
On Monday, Trump warned of steeper duties on countries that “play games” with existing trade deals, prompting several trading partners to reassess their positions. The European Union halted the ratification process of its trade agreement, while India deferred trade talks with the U.S., reflecting caution amid the shifting policy landscape.
Market watchers are also monitoring the resumption of U.S.-Iran nuclear negotiations on Thursday. Trump emphasized a preference for a negotiated settlement but warned of serious consequences if an agreement is not reached, adding another layer of geopolitical risk affecting investor sentiment.
Analysts say the combination of renewed tariffs and ongoing geopolitical tensions has created a risk-off environment, driving investors to take profits in safe-haven assets like gold after recent gains.
