Gold Hits Record High as Tariff Uncertainty and Fed Rate Cut Bets Fuel Rally

Gold prices ease on profit-taking after record highs, dollar steadies ahead of U.S. labor data

Gold prices retreated in Asian trading on Thursday, weighed down by profit-taking after a string of record highs above $3,500 per ounce. The pullback came as the U.S. dollar stabilized, with traders awaiting key labor market data and further clarity on potential Federal Reserve interest rate cuts later this month.

Spot gold fell 0.8% to $3,531.69/oz, while December gold futures slipped 1.3% to $3,589.92/oz as of 01:14 ET (05:14 GMT). Earlier this week, spot prices had surged to a record $3,578.80/oz, supported by safe-haven flows amid concerns over rising government debt levels in developed economies and expectations of Fed easing.

Drivers Behind the Move:

• Profit-taking at record highs: Following the sharp rally, some investors moved to lock in gains, triggering a corrective pullback.
• Federal Reserve expectations: Markets remain confident that the Fed will cut rates this month, but uncertainty lingers over the scale and timing of easing.
• Geopolitical and policy concerns: Gold demand had been underpinned by uncertainty surrounding U.S. trade tariffs after an appeals court deemed most of former President Trump’s levies illegal. Trump vowed to appeal to the Supreme Court, raising doubts over the stability of existing trade deals.
• Fed independence debate: Legal challenges over attempts to dismiss Fed Governor Lisa Cook raised concerns about political pressure on the central bank. These fears eased somewhat after Stephen Miran, nominated by Trump for a Fed seat, pledged to protect the Fed’s independence.

Other Precious & Industrial Metals:

• Platinum fell 0.9% to $1,411.09/oz.
• Silver slipped nearly 1% to $40.83/oz.
• Copper retreated after recent gains: London futures dropped 0.8% to $9,909.50/ton, while COMEX contracts fell 1.1% to $4.5685/lb. Earlier in the week, copper had surged on expectations that China—the world’s top importer—would introduce new stimulus measures to support growth and boost demand.

Outlook:
Gold remains underpinned by safe-haven demand and expectations of U.S. monetary easing, but near-term movements could stay volatile as traders weigh U.S. labor market data and further policy signals. A sustained break above $3,550 may reopen the path toward new record highs, while continued dollar stability could encourage further consolidation.