Gold Price Pulls Back After Hitting $5,250/Oz, Safe-Haven Sentiment Sustains Gold Narrative

TradingKey - During Tuesday's Eastern U.S. trading session, Gold (XAUUSD) Prices retreated after nearly touching the $5,250 threshold as investors engaged in profit-taking and the U.S. dollar strengthened.

As of 8:20 p.m. ET (9:20 a.m. Beijing time), spot gold regained its upward momentum, rising to $5,185 per ounce, while U.S. gold futures broke above $5,200 per ounce.

Earlier, gold faced downward pressure as traders locked in profits after prices hit multi-week highs. Furthermore, hawkish remarks from Federal Reserve officials bolstered the U.S. dollar, weighing on dollar-denominated commodities.

Despite the pullback, the market continues to adhere to a "buy-on-dips" strategy amid resurfacing uncertainties regarding U.S. trade policy, with safe-haven sentiment continuing to dominate gold trading.

It is worth noting that the 10% "global tariff" proposed by the Trump administration officially took effect on Tuesday, while the implementation timeline for a 15% tariff remains uncertain. According to media reports, the U.S. is considering a new round of tariffs on approximately six industries, potentially including products such as large-scale batteries.

Market analysts believe that the potential downside for precious metals may be limited given the uncertainties in U.S. trade policy and escalating tensions in the Middle East.