Gold prices fell on Tuesday as investors booked profits after bullion rose more than 2 per cent in the previous session, while pressure from a stronger dollar also weighed on the yellow metal.

Spot gold fell 1.2pc to $5,167.28 per ounce by 05:38 GMT, snapping a four-session winning streak and dropping from a more than three-week high hit earlier in the day.

US gold futures for April delivery were down 0.7pc at $5,187.40.

“Obviously, we had a meaningful rally (in gold) yesterday. We have a little bit of a digestion here, and I think it’s noteworthy that we don’t see the panic that we saw on Wall Street extend into the Asian market,” said Ilya Spivak, head of global macro at Tastylive.

Asian stocks stabilised after a wobbly start as a fresh AI-linked selloff on Wall Street rattled investors, with sentiment also hurt by heightened anxiety over US President Donald Trump’s tariff policy and geopolitical tensions.

The dollar edged up, making greenback-priced bullion more expensive for holders of other currencies.

US President Donald Trump on Monday warned countries against backing away from trade deals negotiated recently with the US after the Supreme Court struck down his emergency tariffs, saying that if they did, he would hit them with much higher duties under different trade laws.

Elsewhere, Federal Reserve Governor Christopher Waller said he was open to leaving interest rates on hold at the March meeting if the upcoming February jobs data indicated the labour market had “pivoted to a more solid footing” after a weak 2025.

Markets currently expect three 25-basis-point rate cuts this year, according to CME’s FedWatch Tool.

Spot silver fell 0.9pc to $87.39 per ounce, after hitting a more than two-week high on Monday.

Spot platinum lost 0.5pc to $2,142.35 per ounce, while palladium gained 0.4pc to $1,750.98.