Gold prices fell on Tuesday after reaching an all-time high, as investors seized the chance to secure profits amid increasing geopolitical tensions and economic uncertainty. The U.S. dollar stayed near one-month peaks as an investigation into the Federal Reserve Chair unfolds, with top brokerages forecasting upcoming rate reductions. Silver, platinum, and palladium saw decreases. Spot gold decreased by 0.4%, trading at $4,576.79 per ounce as of 0134. Bullion hit a record high of $4,629.94 on Monday. U.S. gold futures for February delivery fell by 0.6%, closing at $4,585.40.
On Monday, U.S. President Donald Trump announced that any country trading with Iran will face a 25% tariff on its dealings with the United States. This comes as Washington evaluates its reaction to the substantial anti-government protests in Iran, which represent the largest demonstrations seen in years. Iran’s unrest aligns with Trump’s display of U.S. power internationally, highlighted by the ousting of Venezuelan President Nicolas Maduro and discussions about the possible acquisition of Greenland, whether through purchase or pressure.
The dollar held onto its losses while staying near one-month highs after the Trump administration began a criminal investigation into Federal Reserve Chair Jerome Powell. This situation threatens the autonomy of the central bank and may erode trust in U.S. assets. The decision by the Trump administration to investigate Powell has faced disapproval from former Federal Reserve chairs and significant criticism from notable figures within the Republican Party on Monday. Meanwhile, leading financial institutions such as Goldman Sachs and Morgan Stanley expect two cuts of 25 basis points each in June and September. Non-yielding assets often show positive performance in settings marked by low interest rates and during times of geopolitical or economic instability.
Spot silver fell by 1.6% to $83.62 per ounce after reaching an all-time high of $86.22 on Monday. Platinum prices fell by 2.5%, closing at $2,283.95 per ounce, after reaching a peak of $2,478.50 on December 29. Palladium fell by 3.7%, closing at $1,774.44 per ounce.