Gold snapped a four-day winning streak on Tuesday, easing as much as 1.6% as traders booked profits after a 7% rally fueled by US tariff fears and Middle East tensions.
The pullback was amplified as Chinese markets reopened. Still, the underlying support for gold remains intact, given the uncertainty over US tariff policies and tensions with Iran.
Mixed signals from the White House are keeping markets on edge. While a 10% tariff has taken effect, a proposed hike to 15% is in legal limbo after a Supreme Court ruling.
Tariff headlines are supportive for gold, but have not been enough to force a decisive breakout, leaving the metal more likely to consolidate than make another aggressive run in the near term.
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The pause follows a volatile month that saw gold crash from a record above $5,595 before recovering much of the loss. Major banks still expect prices to recover, citing geopolitical risk and a shift away from sovereign bonds.
The US has also built its largest military presence in the Middle East since 2003 as nuclear talks with Iran resume.
Spot gold was down 1.1% at $5,169.73 in Singapore.
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