Gold Retreats on Profit Taking

Gold fell nealry 2% to around $5,130 per ounce as a rotation into US Treasuries overshadowed traditional safe-haven demand. While the 10-year Treasury yield dropped below 4.05% due to fears that AI advances will disrupt software and payment sectors, gold’s rally stalled as the yield curve flattened and markets lowered expectations for a Federal Reserve rate cut. Volatility remains high as a 10% global tariff took effect today while the White House prepared a formal order to increase that rate to 15%. This trade emergency prompted European and Asian economies to consider suspending existing deals with the US even as nuclear talks with Iran are set to resume this Thursday. Despite these escalating geopolitical risks and trade frictions, investors are currently prioritizing fixed income as they await Nvidia’s earnings and monitor potential shifts in financial infrastructure. Gold remains caught between these safe-haven inflows and the pressure of a stronger dollar.

Gold fell 1% to around $5,170 per ounce on Tuesday after four straight sessions of gains, as investors booked profits amid renewed trade uncertainty and geopolitical risks. President Trump's new 10% global tariff took effect today, as the White House moves to revive his tariff agenda after the Supreme Court last week blocked many levies imposed last year. Reports suggest the administration is preparing a formal order that could raise the rate to 15%. On Monday, Trump warned of steeper duties on countries that “play games” with their existing trade deals. His warning comes as many trade partners reassess their trade positions following the court's ruling. The EU halted the ratification process of its trade agreement, while India deferred talks with the US. Attention also remains on US-Iran nuclear talks, set to resume on Thursday. Trump said he prefers a negotiated settlement but cautioned that serious consequences could follow if a deal is not reached.

Gold surged over 2% to trade above $5,210 per ounce on Monday, hitting a multi-week peak as a convergence of trade protectionism and heightened geopolitical risk drove safe-haven inflows. The rally accelerated after President Trump's move to implement a 15% global surcharge under Section 122, bypassing the Supreme Court's recent restriction on reciprocal tariffs. This policy pivot triggered immediate retaliatory signals, with the European Union proposing a halt to US trade deal ratifications and India postponing interim negotiations. These trade frictions are compounded by a military buildup in the Middle East as US-Iran nuclear talks reach an impasse ahead of Thursday's meeting in Geneva. While the dollar index held at 97.8, gold found additional support from the return of Chinese buyers following the holiday. With the 10-year Treasury yield steadying at 4.07%, the metal is capitalizing on its role as a hedge against the potential breakdown of global trade and regional stability.