Gold prices fell on Tuesday. After four consecutive days of gains and touching a three-week high, investors took profits. At the same time, a slight rise in the US dollar pressured gold prices. In the previous trading day, gold prices rose about 2.5% due to uncertainty over US trade policy. The US Dollar Index rose 0.1%.
Last week, the US Supreme Court struck down a comprehensive tariff plan put forward by former President Donald Trump. But the administration immediately announced new tariffs of up to 15%. Trump also warned that countries that do not comply with US trade agreements will face higher tariffs.
It predicts that gold prices could rise to $6,200 an ounce in the coming months. The company said the fundamentals supporting gold’s rise are still strong. Furthermore, UBS expects the US Federal Reserve to cut interest rates twice (each time by 0.25%) by September.
