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Gold prices slipped in Asian trading on Thursday, pulling back from fresh record highs as investors booked profits following a sharp rally, while hawkish signals from Federal Reserve Chair Jerome Powell tempered bullish sentiment across precious metals.
- Spot gold fell 0.7% to $3,320.56/oz
- Gold futures (June delivery) dropped 0.4% to $3,334.61/oz
Earlier in the session, the yellow metal had touched a new all-time high of $3,356.32, marking its second consecutive day of record-setting gains.
Powell Pushback Halts Gold’s Bullish Momentum
The sharp rally in gold had been fueled by:
- Geopolitical tensions, particularly U.S.-China trade friction and Middle East instability
- Robust central bank purchases
- Persistent inflation concerns
But momentum paused as Federal Reserve Chair Jerome Powell signaled that:
- Rate cuts are not imminent, due to elevated inflation and potential price pressures stemming from new tariff policies
- The Fed would continue to adopt a “wait-and-see” stance amid ongoing economic uncertainty
Despite the dip, analysts say underlying support remains strong as macro risks linger.
Trade Talks Offer Relief but Add Volatility
Adding to the mixed sentiment, President Trump announced “big progress” in U.S.-Japan trade negotiations, following meetings in Washington on Wednesday.
While such developments signal potential de-escalation, they also reduce safe-haven demand in the short term.
Other Precious Metals Follow Gold Lower
- Silver futures fell 1.6% to $32.470/oz
- Platinum futures declined 1.1% to $969.75/oz
The pullback reflects broader cooling across the precious metals space, driven in part by a stronger dollar and expectations of persistently high U.S. interest rates.
Copper Drops on Hawkish Fed and Trade Worries
Copper prices also moved lower on Thursday, hurt by:
- A firmer U.S. dollar, which makes commodities priced in dollars more expensive for foreign buyers
- Ongoing U.S.-China tariff tensions, despite media reports suggesting Beijing may be open to negotiations
- LME copper futures fell 0.4% to $9,172.15/ton
- U.S. copper futures (May) sank 1.6% to $4.610/pound
With China facing up to 145% tariffs, the outlook for industrial demand remains clouded, even as China’s Q1 GDP exceeded expectations earlier in the week.
Outlook: Gold’s Bull Run Pauses, Not Ends
While Thursday’s dip reflects short-term profit-taking and Powell’s hawkish tilt, the long-term drivers of gold’s rally remain intact, including:
- Sticky global inflation
- Central bank diversification
- Geopolitical and trade risks
Barring a significant policy shift or a resolution to trade tensions, gold remains well-positioned to find strong support above $3,300, with scope to retest new highs in the coming sessions.
