Gold prices slipped in Asian trading on Thursday, falling further from record highs due to the strengthening of the US Dollar, which was buoyed by President Donald Trump’s ongoing tariff threats.
The yellow metal faced a wave of profit-taking after reaching record levels earlier this week. Despite concerns over potential trade tariffs and a cooling US economy driving demand for safe-haven assets, gold struggled to maintain its momentum above the $3,000 per ounce mark. Additionally, reports indicating a potential US-brokered peace deal between Russia and Ukraine dampened some of the safe-haven appeal for gold.
Broader metal prices were also pressured by the dollar’s recovery, which was poised for mild weekly gains after a recent slump to two-and-a-half-month lows.
As of 00:59 ET (05:59 GMT), spot gold had fallen 0.9% to $2,890.73 per ounce, while April gold futures dropped 0.9% to $2,903.39 per ounce.
Weekly Losses Loom for Gold Despite Record Highs
Gold prices were on track for weekly losses of between 1.4% and 2%, following a period of profit-taking after hitting a peak of $2,956.37 per ounce earlier in the week. The metal had been buoyed primarily by increased safe-haven demand in response to Trump’s trade tariff threats. His comments, including the prospect of 25% tariffs on European imports and the potential for a renewed trade war with China, had driven investors to seek the security of gold.
On Wednesday, Trump confirmed that 25% tariffs on Europe were imminent, although tariffs on Canada and Mexico would likely be delayed until early April, extending the original deadline.
Dollar Gains Pressure Metal Markets
The recovery of the US Dollar from its recent three-month low put additional pressure on broader metal prices. Platinum futures fell 0.2% to $973.20 per ounce, and silver futures dropped 0.7% to $32.05 per ounce. Among industrial metals, copper prices were mixed after Trump’s threats of tariffs on copper imports. US copper futures for May were on track for a weekly gain, as any tariffs are expected to limit domestic supplies. However, benchmark copper futures on the London Metal Exchange were set to post a weekly loss, as US tariffs would dampen demand for foreign copper.
The US Dollar was poised to break a three-week losing streak, with traders positioning ahead of the key fourth-quarter GDP data set for release later today. Additionally, the US Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, will be released on Friday and could further influence the outlook for interest rates.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Gold Rates Skyrocket in Chennai on Diwali, 24K Gold Exceeds Rs. 81,000 Per 10 Grams
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
