Gold retreats below $4,600 after sharp safe-haven rally

Gold prices slipped below $4,600 per ounce in early Asian trade on Tuesday, easing after a sharp rally of more than $100 following renewed concerns over the US Federal Reserve?s independence, escalating geopolitical risks, and fresh tariff threats from President Donald Trump. The sharp surge in gold?and a parallel rally in silver?was directly driven by safe-haven demand sparked by President Donald Trump?s tariff actions and escalating geopolitical uncertainty. Trump?s announcement of a 25% tariff on countries trading with Iran, coupled with repeated warnings of possible military action, triggered a broad flight to safety across financial markets. This tariff turmoil has significantly lifted demand for precious metals, with investors turning to gold and silver for protection against policy risk, trade disruption, and geopolitical instability. In the domestic market, MCX February gold futures edged lower by 0.23% to ₹1,41,700 per 10 grams, tracking the global pullback amid profit-taking. Investor focus has now shifted to US inflation data due later today, which could provide clearer signals on the Fed?s policy outlook following signs of cooling in the labor market. While the Federal Reserve is widely expected to keep rates unchanged this month, markets continue to price in potential rate cuts later in the year.

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