On Tuesday, gold prices fell from a high that hadn’t been reached in more than three weeks, as the impact of a stronger dollar outweighed the backing from concerns about U.S. tariffs and the ongoing tensions between Washington and Tehran. Spot gold fell by 1.5% to $5,150.38 per ounce as of 0125, after reaching a peak that represented a more than three-week high earlier in the session. U.S. gold futures for April delivery saw a decrease of 1.1%, closing at $5,170.70. The dollar appreciated, leading to a rise in the cost of bullion priced in greenbacks for holders of other currencies.

On Monday, U.S. President Donald Trump warned countries not to withdraw their backing for the recently negotiated trade agreements with the U.S. after the Supreme Court’s ruling against his emergency tariffs, stating that noncompliance would lead to much higher duties under different trade rules. Federal Reserve Governor Christopher Waller indicated a readiness to keep interest rates steady at the March meeting, depending on the upcoming February jobs data showing that the labour market had “pivoted to a more solid footing” after a weak 2025.

Markets currently expect three reductions of 25 basis points in interest rates this year, as shown by CME’s FedWatch Tool. Asian stock markets showed a subdued performance in early trade on Tuesday, following a selloff on Wall Street that left investors feeling uneasy. Sentiment was further weakened by rising uncertainty regarding U.S. President Donald Trump’s tariff policy and growing geopolitical tensions.

The State Department is pulling back non-essential government staff and their eligible family members from the U.S. embassy in Beirut, as stated by a senior official on Monday, due to rising worries about the possibility of military conflict with Iran. Spot silver fell by 3.1% to $85.50 per ounce, after reaching a peak that represented a high not seen in over two weeks on Monday. Spot platinum fell by 2.9% to $2,092.31 per ounce, while palladium dropped by 2.1% to $1,706.50.