Gold eased on Tuesday, a day after breaching $4,600/ounce for the first time ever, as investors booked profits amid heightened geopolitical and economic uncertainty.
U.S. gold futures for February delivery lost 0.6% to $4,585.40.
U.S. President Donald Trump said on Monday any country that does business with Iran will face a 25% tariff on trade with the U.S., as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.
Iran’s unrest comes as Trump flexes U.S. muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing acquiring Greenland by purchase or force.
The dollar held to its losses but hovered near one-month highs after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, a move that threatens the central bank’s independence and faith in U.S. assets.
The Trump administration’s decision to investigate Powell drew condemnation from former Fed chiefs and a chorus of criticism from key members of the Republican Party on Monday.
Meanwhile, major brokerages such as Goldman Sachs and Morgan Stanley expect two 25-basis-point rate cuts each in June and September.
Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.
Spot silver shed 1.6% to $83.62 per ounce after hitting an all-time high of $86.22 on Monday.
Spot platinum lost 2.5% to $2,283.95 per ounce after scaling a record peak of $2,478.50 on December 29.
Palladium slid 3.7% to $1,774.44 per ounce.
