Gold Dips as Dollar Gains and Global Tensions Loom

Gold prices declined more than 2% on Tuesday, retreating from a three-week peak as investors took profits and a firmer dollar put pressure on the precious metals market. Traders awaited direction on U.S. tariff policies and increasing tensions between Washington and Tehran.

The U.S. dollar's 0.3% rise rendered greenback-priced gold more expensive for holders of other currencies, contributing to the sell-off. Jim Wyckoff, senior analyst at Kitco Metals, described the pullback as corrective after a previous upward trend, citing the stronger dollar's negative influence.

While the market grappled with tariff and geopolitical uncertainties, gold's status as a safe-haven continued to attract buyers. Nonetheless, without fresh geopolitical catalysts, prices face resistance near record highs. Parallel declines were observed in other precious metals including silver, platinum, and palladium, amid broader economic transitions flagged by Atlanta Federal Reserve President Raphael Bostic.