Gold Retreats from Record High as Trump Softens Stance on China

Gold’s meteoric rise hit a speed bump on Friday, slipping 2% from its all-time high after U.S. President Donald Trump signaled a more measured approach toward China. The precious metal, which had soared to an unprecedented $4,379 per ounce earlier in the day, fell below $4,250 as investor sentiment shifted.

The pullback came swiftly after Trump remarked that imposing steep tariffs on China was not sustainable and could escalate tensions. His announcement of a forthcoming meeting with Chinese President Xi Jinping in South Korea further eased market anxieties, prompting a renewed appetite for risk and a dip in safe-haven assets like gold.

Adding to the pressure, U.S. Treasury yields climbed, and the dollar regained strength—both factors that typically weigh on gold prices. Meanwhile, Federal Reserve officials hinted at potential rate cuts later this year, though they remained firm on their commitment to controlling inflation.

Despite the retreat, gold’s overall trajectory in 2025 remains bullish. The metal has surged over 60% since January, fueled by global uncertainty, central bank accumulation, and a shift away from the dollar. Analysts remain optimistic, with forecasts suggesting gold could average above $4,400 next year and potentially hit $5,000 by 2026.

While the current dip may offer a breather, many traders view it as a buying opportunity. With support levels near $4,200 and resistance just above $4,300, gold’s next move could hinge on upcoming economic data and geopolitical developments.