Gold prices retreated on Tuesday, slipping 2.5% to $5,191 an ounce as a firmer dollar outweighed safe-haven demand linked to escalating U.S.-Israeli strikes against Iran. The pullback followed a Monday surge to $5,419, the highest level since late January. Max Baecker, president of American Hartford Gold, told Investing.com that gold's immediate response to the weekend escalation was "textbook," with the metal jumping over $100 into the $5,390-$5,400 range.

Baecker noted that a 2-3% jump is typical during geopolitical episodes, but sustainability depends on whether tensions broaden. If energy infrastructure risks persist, he said levels around $5,450 could be reached quickly. Conversely, a cooling conflict could see consolidation toward $5,250-$5,300, particularly if real yields remain firm. The dollar's strength, trading at its highest level in over a month, typically makes gold more expensive for holders of other currencies, weighing on prices.

Looking further out, Baecker argued gold's longer-term backdrop was already supportive before the latest crisis, citing sovereign debt expansion, continued central-bank buying and gradual de-dollarization trends. "Geopolitics simply accelerates trends that were firmly in place," he wrote. Asked about the $6,000 target, Baecker said that from Monday's $5,400 level, "a move to $6,000 would represent about an 11% gain" and is "not an aggressive projection" under sustained geopolitical stress layered on fiscal pressures.