Global gold prices reversed lower in Tuesday’s trading session after posting four consecutive days of gains. The precious metal failed to maintain its position above the psychological level of US$5,200 per troy ounce, amid profit-taking activity and a modest rebound in the US dollar.
At the time of writing, gold prices were down 0.83% at US$5,184.62 per troy ounce, after briefly touching the US$5,200 level earlier in the session.
Senior analyst at Prof FX, William R. Barona, said that technically gold remains in a bullish trend, although upside momentum has begun to slow after prices reached the US$5,230 area during the Asian session.
William noted that the pullback comes amid evolving US trade policy dynamics. Uncertainty resurfaced after the Supreme Court of the United States overturned major import tariffs previously imposed under President Donald Trump’s administration.
“Although the government later announced new tariffs of 15%, the market is still assessing the implications for global trade stability,” William said.
On another front, he added, market participants are closely monitoring developments in nuclear negotiations between the United States and Iran. Any positive signals from diplomatic channels could dampen demand for safe-haven assets such as gold, thereby limiting short-term upside potential.
US Macroeconomic Backdrop
From a macroeconomic perspective, William highlighted that the US dollar index, which previously slipped to the 97.64 area, is now stabilizing, while the yield on the benchmark 10-year US Treasury note stands near 4.0%.
Historically, gold has maintained an inverse correlation with the US dollar and Treasury yields. When both remain stable or strengthen, gold’s appeal tends to diminish as the opportunity cost of holding non-yielding assets increases.
William emphasized that markets are also awaiting the release of US Producer Price Index (PPI) data, which is projected to rise moderately by 0.3%. The data will serve as a key indicator for the direction of monetary policy at the Federal Reserve.
Recent remarks from Federal Reserve Governor Christopher Waller, who signaled the possibility of maintaining current interest rates, have also drawn investor attention.
From a technical standpoint, William explained that while the short-term trend structure remains constructive, the risk of further correction persists. Should selling pressure intensify, gold could decline toward the nearest support area around US$5,127 per troy ounce.
“Conversely, if prices manage to break back above and hold firmly over US$5,200, the opportunity to test resistance at US$5,250 remains open,” William concluded.
