- Gold prices fell 1% to $5,179.77 per ounce, ending a four-day winning streak
- US gold futures dropped 0.5% to $5,199.40 amid profit booking and dollar strength
- Axis Securities expects US gold to rise to $5,311 and MCX April gold near Rs 1,61,729
Gold prices retreated on Tuesday after scaling a more than three-week high earlier in the session, as investors booked profits following the previous session's sharp rally and a firmer U.S. dollar weighed on the bullish sentiment.
Spot gold fell 1% to $5,179.77 per ounce by 07:35 GMT, snapping a four-session winning streak. The metal had surged more than 2% in the prior session. US gold futures for April delivery were down 0.5% at $5,199.40.
“Obviously, we had a meaningful rally (in gold) yesterday. We have a little bit of a digestion here, and I think it's noteworthy that we don't see the panic that we saw on Wall Street extend into the Asian market,” said Ilya Spivak, head of global macro at Tastylive, according to Reuters.
Dollar Strength Caps Gains
The dollar edged higher, making greenback-denominated bullion more expensive for holders of other currencies, thereby limiting further upside for the yellow metal.
Asian equities steadied after a volatile start, as a fresh AI-linked selloff on Wall Street rattled investors. Market sentiment also remained fragile amid renewed concerns over U.S. trade policy and geopolitical tensions.
US President Donald Trump warned countries against backing away from trade agreements negotiated with Washington after the Supreme Court struck down his emergency tariffs. He said that nations stepping back from deals could face “much higher duties under different trade laws.”
Fed Watch: Rate Pause Or Cuts?
On the monetary policy front, Federal Reserve Governor Christopher Waller signalled he was open to keeping interest rates unchanged at the March meeting if February jobs data shows the labour market has “pivoted to a more solid footing” after a weak 2025.
Markets are currently pricing in three 25-basis-point rate cuts this year, according to CME's FedWatch Tool.
Lower interest rates tend to support non-yielding assets such as gold, but a stronger dollar can offset that benefit in the near term.
Other Precious Metals
Spot silver was steady at $88.19 per ounce, after touching a more than two-week high in the previous session.
Platinum rose 0.1% to $2,154.97 per ounce.
Palladium gained 0.4% to $1,750.14 per ounce.
Also Read: Glimmer Of Hope: Nifty Signals Bullish Crossover Even As Markets Tumble
Axis Securities Outlook
Despite Tuesday's pullback, analysts at Axis Securities maintain a bullish bias. In a note, the brokerage said U.S. spot gold could rise toward $5,311 per ounce during the session. It projected range of $5,106.43–$5,311.27.
On the domestic front, Axis Securities expects April gold futures on the Multi Commodity Exchange (MCX) to potentially touch Rs 1,61,729 per 10 grams.
With trade tensions simmering, Fed policy uncertainty lingering and safe-haven demand intact, gold's near-term trajectory is likely to hinge on upcoming US macro data and dollar movement.
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