Gold Prices Retreat as Dollar Strengthens and Investors Take Profits
Gold prices declined on Tuesday (February 24, 2026), pulling back from their highest level in more than three weeks as the US dollar strengthened and investors locked in profits.
The correction comes as markets await further clarity on US tariff policy and developments in upcoming nuclear talks between Iran and the United States.
Gold Falls From Three-Week High
According to a Reuters report, spot gold slipped 1.4% to US$5,158.24 per ounce at 1:40 p.m. New York time. Meanwhile, US gold futures for April delivery closed 0.9% lower at US$5,176.30 per ounce.
The decline followed a 0.1% rise in the US dollar index. A stronger dollar makes gold, which is priced in the US currency, more expensive for holders of other currencies, thereby reducing demand.
Senior analyst Jim Wyckoff of Kitco Metals described the drop as a technical correction.
“Gold prices had moved higher quite strongly, so this pullback appears to be a normal correction. The stronger dollar is also adding pressure,” he said.
Tariff Uncertainty and Supreme Court Ruling
Earlier in the session, gold touched a three-week high after US President Donald Trump signaled plans to raise import tariffs to 15%. The announcement followed a US Supreme Court ruling stating that the use of emergency powers to impose tariffs exceeded presidential authority.
However, the US government maintained a 10% tariff on all non-exempt goods, in line with previous announcements.
Iran-US Nuclear Talks in Focus
Market attention is also centered on the third round of nuclear negotiations between Iran and the United States, scheduled to take place Thursday in Geneva.
The talks come amid growing concerns over escalating geopolitical tensions between the two countries.
According to Wyckoff, safe-haven demand for gold remains relatively strong. Ongoing geopolitical risks and tariff uncertainty are limiting deeper selling pressure.
However, he noted that breaking to new record highs would require a stronger geopolitical or economic catalyst.
“When prices approach record levels, resistance becomes stronger. A push to fresh highs will likely need a significant new catalyst,” he added.
Fed Outlook and Structural Unemployment Risks
Gold is traditionally viewed as a hedge against economic and geopolitical uncertainty. Still, market sentiment is also influenced by US economic developments.
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, told Reuters that the United States could enter a phase of structurally higher unemployment. He attributed this risk to companies increasingly adopting artificial intelligence (AI) to reduce labor demand — a challenge that may not be resolved solely through interest rate cuts.
Other Precious Metals Performance
In other precious metals markets:
Spot silver fell 1.2% to US$87.21 per ounce after reaching a two-week high in the previous session.
Platinum gained 1% to US$2,175.95 per ounce.
Palladium surged 2.3% to US$1,785.35 per ounce.