Gold eased on Tuesday, a day after breaching US$4,600 (RM18,673.70) an ounce for the first time ever, as investors booked profits amid heightened geopolitical and economic uncertainty.

Spot gold had fallen 0.4% to US$4,576.79 per ounce as of 0134 GMT. Bullion hit a record high of US$4,629.94 on Monday.

US gold futures for February delivery lost 0.6% to US$4,585.40.

US President Donald Trump said on Monday any country that does business with Iran will face a 25% tariff on trade with the US, as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

Iran’s unrest comes as Trump flexes US muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing acquiring Greenland by purchase or force.

The dollar held to its losses but hovered near one-month highs after the Trump administration opened a criminal investigation into Federal Reserve (Fed) chair Jerome Powell, a move that threatens the central bank’s independence and faith in US assets.

The Trump administration’s decision to investigate Powell drew condemnation from former Fed chiefs and a chorus of criticism from key members of the Republican Party on Monday.

Meanwhile, major brokerages such as Goldman Sachs and Morgan Stanley expect two 25-basis-point rate cuts each in June and September.

Source: Theedgemalaysia