Gold prices fell sharply in Asian trading on Tuesday, ending a four-day winning streak and pulling back from a three-week high. Spot gold dropped 1.1% to $5,172.42 per ounce by 21:20 ET (02:20 GMT), retreating after climbing to its strongest level since late January in early trading. U.S. gold futures also declined 0.6% to $5,193.44/oz. The retreat followed a 2.5% surge in the previous session, fueled by renewed uncertainty surrounding U.S. trade policy.

Prices had risen nearly 2% on Monday after covering losses. A stronger U.S. dollar, making bullion more expensive for holders of other currencies, contributed to the decline. The U.S. Supreme Court's recent strike down of President Trump's earlier sweeping tariffs was quickly followed by the administration announcing new levies of up to 15%, reviving fears of escalating trade disputes.

Trump's warning on Monday that countries playing 'games' with trade agreements signaled potential for further measures despite the legal setback. Geopolitical tensions, including upcoming nuclear talks between the U.S. and Iran in Geneva, remained a backdrop. While Tuesday's retreat occurred, persistent trade uncertainty and geopolitical risk continued to underpin bullion markets.