By Noel John
Feb 24 (Reuters) – Gold prices fell more than 1% on Tuesday, easing from a three-week high hit earlier in the session, as a stronger dollar and profit taking weighed on prices while investors awaited clarity on U.S. President Donald Trump’s tariff plans.
Spot gold dropped 1.1% to $5,172.11 per ounce by 0827 GMT, snapping a four-session winning streak. U.S. gold futures for April delivery were down 0.6% at $5,191.50.
The U.S. dollar rose 0.2%, making greenback-priced bullion more expensive for holders of other currencies. [USD/]
“There was some profit taking as prices spiked to highs of around $5,249/oz,” said Zain Vawda, analyst at MarketPulse by OANDA. “The other factor was likely the announcement of a new tariff by the Trump administration which has provided some near-term clarity on the tariff question.”
Gold, a traditional safe-haven asset, tends to benefit in times of geopolitical and economic uncertainty.
The U.S. Supreme Court ruled on Friday that Trump’s use of a 1977 emergency law to impose tariffs exceeded his authority, but hours later Trump invoked a different law and imposed a temporary tariff of 15% on U.S. imports.
Trump on Monday warned countries against backing away from recently negotiated trade deals, saying that he would hit them with much higher duties under different trade laws.
Meanwhile, Iran and the U.S. will hold a third round of nuclear talks on Thursday in Geneva, Oman’s Foreign Minister Badr Albusaidi said on Sunday.
“The broader narrative (for gold) remains skewed to the upside. If we see further dollar weakness or an escalation in Middle East (tensions), a reversal toward the $5,210 level and potentially fresh highs above the $5,249 handle is well within reach,” Vawda said.
Spot silver fell 0.3% to $87.94 per ounce, after hitting a more than two-week high on Monday.
Spot platinum slipped 0.2% to $2,149.04 per ounce, and palladium also fell 0.2%, to $1,739.69.
(Reporting by Noel John in Bengaluru; Editing by Susan Fenton)
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