Gold prices fell to their lowest in more than a week on Tuesday, as investors booked profits after hitting a record high in the previous session on lingering concerns about instability surrounding U.S. President Donald Trump's tariff plans.
Spot gold fell 1.4% to $2,909.59 an ounce by 1:46 a.m. (1846 GMT), after hitting its lowest since Feb. 17 earlier in the session. It hit a high of $2,956.15 on Monday.
U.S. gold futures settled 1.5% lower at $2,918.80.
"You're seeing profit-taking and people looking to get out and rebuild positions at lower prices," said Bob Haberkorn, senior market strategist at RJO Futures. Safe-haven gold has hit 11 record highs this year so far, topping the key $2,950/oz milestone.
Trump said Monday that tariffs on Canadian and Mexican imports were "on time and on schedule" despite efforts by those countries to beef up border security and stop the flow of fentanyl into the U.S. ahead of a March 4 deadline.
"I still think there's enough uncertainty out there related to tariffs (and) trade more generally … that dips will continue to be viewed as buying opportunities," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold speculators cut net long positions by 13,605 contracts to 201,962 in the week to Feb. 18.
Meanwhile, investors and economists expect the U.S. Federal Reserve to respond "robustly and systematically" to changes in inflation and the labor market, according to research published Monday by the San Francisco Fed. Higher inflation could force the Fed to keep interest rates higher, denting the appeal of non-yielding bullion. (Newsmaker23)
Source: Routers
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