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Gold prices fell in Asian trading on Thursday, extending their retreat from record highs as a stronger U.S. dollar and ongoing trade tariff concerns pressured the precious metal.
Gold Pulls Back from Record Highs
Profit-taking drove gold prices lower, despite lingering safe-haven demand amid rising trade tensions and signs of a slowing U.S. economy. Spot gold dropped 0.9% to $2,890.73 per ounce, while gold futures for April delivery declined 0.9% to $2,903.39 per ounce by 00:59 ET (05:59 GMT).
After reaching an all-time high of $2,956.37 per ounce earlier in the week, gold is now set for a weekly loss of 1.4% to 2% as investors lock in gains.
Market Drivers: Trade Tariffs & Peace Talks
- Stronger Dollar: A firmer U.S. dollar, which rebounded from 2.5-month lows, added pressure on gold and broader metal markets.
- U.S.-Brokered Peace Talks: Reports of progress in U.S.-led negotiations between Russia and Ukraine dampened some of gold’s safe-haven appeal.
- Trade Tariff Concerns: President Donald Trump reiterated his stance on increasing tariffs against Europe, China, and other key trading partners, fueling uncertainty in global markets.
- China Sanctions: Trump outlined a series of new trade restrictions on China, raising fears of renewed economic tensions between the world’s two largest economies.
Outlook for Gold Prices
While gold remains supported by safe-haven demand, its ability to sustain gains near the $3,000 per ounce level remains uncertain, particularly as investors react to shifting geopolitical developments and a strengthening dollar. Market participants will closely watch upcoming economic data and central bank signals for further direction.
