Gold prices fell on February 24, 2026, after reaching a three-week high, due to profit-taking and the strengthening of the US dollar. Spot gold dropped 1.4% to $5,158.24 per ounce, while US gold futures for April delivery fell 0.9% to $5,176.30. The stronger dollar made gold more expensive for holders of other currencies, leading to a price decline.
Senior analyst Jim Wyckoff from Kitco Metals explained that while gold was in an uptrend, this drop was likely just a correction. He added that the stronger dollar also put pressure on gold prices. The market was also focused on President Donald Trump’s tax policies and the upcoming nuclear negotiations between the US and Iran.
Gold prices had earlier reached their highest level in three weeks after President Trump announced a 15% import tax increase, following a ruling from the US Supreme Court that his emergency powers to impose tariffs were excessive. However, on Tuesday, the US enforced a 10% tariff on goods not exempted, which had an immediate downward effect on gold.
Simultaneously, the US and Iran are set to hold their third round of nuclear talks on Thursday in Geneva, with growing concerns over the possibility of military conflict between the two nations. The demand for safe-haven assets like gold remains strong amid this uncertainty.
“The demand for safe assets remains strong, as tensions between the US and Iran, along with uncertainty over tax policies, limit gold selling pressure. While fundamentals still support gold, prices face strong resistance as they approach record highs, and pushing gold to new highs may require new geopolitical triggers,” said Wyckoff.
Gold, traditionally a safe-haven asset, tends to benefit during times of geopolitical and economic uncertainty.
On the other hand, Raphael Bostic, the outgoing President of the Federal Reserve Bank of Atlanta, stated in an interview with Reuters that the US may be entering a period of higher structural unemployment, as companies are increasingly adopting AI technology to reduce labor costs. This shift could be a change that the Federal Reserve may not be able to counter by lowering interest rates.
Spot silver prices dropped 1.2% to $87.21 per ounce, after reaching a two-week high on Monday. Platinum rose 1% to $2,175.95 per ounce, while palladium increased 2.3% to $1,785.35 per ounce.
Bloomberg reported that gold prices dropped 0.3% to $5,131.00 per ounce at 7:27 AM Singapore time. Silver dropped 0.4% to $86.80, and platinum and palladium also decreased. The Bloomberg Dollar Spot Index closed higher in the previous trading session.
Gold prices continued to fall slightly following a decline on Tuesday, with reduced expectations that the US Federal Reserve (Fed) will lower interest rates soon. Gold was priced at around $5,130 per ounce in early Wednesday trading after falling 1.6% on Tuesday, ending a four-day rally. Susan Collins, President of the Federal Reserve Bank of Boston, said that interest rates are likely to stay “for a while” as the latest economic data shows improvement in the US labor market.
The January Fed policy meeting minutes, released earlier this month, showed that Federal Reserve officials appear cautious about lowering interest rates. Higher borrowing costs tend to be a barrier for precious metals, which do not yield interest.