Gold pulls back after four-day ascent as traders take profits

Gold retreated, as traders took profits after four days of gains spurred by uncertainty over US trade policy and heightened tensions in the Middle East.

Bullion fell as much as 1.6%, before paring some losses, as Chinese traders returned on Tuesday after the Lunar New Year break. The metal climbed more than 7% over the previous four sessions, with investors drawn to safer assets as President Donald Trump promised new import tariffs and the US faced off with Iran.

Read: Gold rises as trump tariff defeat throws trade deals into doubt

“Moves within 2% are in the normal range of market volatility right now,” said Song Jiangzhen, a researcher at Guangdong Southern Gold Market Academy. “Longer-term sentiment is still positive, with ongoing uncertainty in Iran, and the US risking isolation with its tariff policies,” he said.

Markets are in a state of confusion after Trump said he would increase a global import levy to 15% following the US Supreme Court’s ruling against his so-called reciprocal tariffs.

Some of America’s trading partners are struggling to reconcile the latest tariffs with earlier deals, adding tension to already strained relationships. An assessment by the European Union found that Trump’s new policy would raise duties on some of its exports above levels permitted under a trade agreement.

Read: Simon’s weekly wrap: Trade shifts, grid reform and gold gains

“Tariff headlines keep uncertainty elevated, which is supportive for gold at the margin, but so far they haven’t been enough to force a decisive breakout,” said Christopher Hamilton, head of client solutions for Asia-Pacific excluding Japan, at Invesco. “With real rates still relatively firm and the dollar holding up, gold looks more likely to consolidate than trend aggressively in the near term,” he said.

As investors seek refuge from risk, gold has found a footing back above $5 000 an ounce after a historic rout at the turn of the month. A wave of speculative buying had pushed a multiyear rally to breaking point, leading bullion to snap back sharply from a record above $5 595 in late January. It has since recovered more than half of these losses, though trading has been unusually choppy.

Many banks, including BNP Paribas SA, Deutsche Bank AG and Goldman Sachs Group, have forecast that prices will recover, as the underlying factors behind gold’s earlier advance remain intact. These include concerns about the Federal Reserve’s independence and a wider shift away from sovereign bonds and currencies, as well as geopolitical risks — particularly in the Middle East.

Read: Gold steadies near $5 000 as Iran risks, Fed outlook in focus

The US has amassed its biggest military force in the region since 2003, with talks around Iran’s nuclear program set to resume this week. While stating his preference for a diplomatic resolution, Trump also said it would be a “very bad day” for Iran if a deal is not reached, and pushed back on reports that the Pentagon was concerned about the potential difficulty of an extended military campaign.

Gold fell 0.8% to $5 185.43 an ounce as of 10:55 a.m. Singapore time. Silver dropped 1.1% to $87.27. Platinum declined, while palladium rose. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed after ending the previous session up 0.1%.

© 2026 Bloomberg

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