Gold prices eased on Thursday, retreating from a historic high reached earlier this week. The drop came as investors took profits ahead of a long weekend, despite ongoing U.S.-China trade tensions and a softer U.S. dollar, which kept the precious metal above the $3,300 per ounce mark.
As of 08:58 AM ET, spot gold was down 0.5%, trading at $3,326.51 an ounce, after briefly hitting a record high of $3,357.40 earlier in the session. Despite the dip, gold has gained nearly 3% this week. U.S. gold futures also slipped, falling 0.2% to $3,339.90, according to Reuters.
Tai Wong, an independent metals trader, explained that gold may experience a short-term pullback after its spectacular surge earlier this week, combined with the upcoming long weekend in the markets. He also noted the possibility of a trade deal announcement over the weekend, potentially with Japan, which could impact gold prices. Nevertheless, Wong emphasized that gold’s longer-term trajectory remains positive, driven by ongoing uncertainty and concerns affecting global markets.
The recent surge in gold prices was sparked by U.S. President Donald Trump’s order for a probe into potential tariffs on critical mineral imports, as well as reviews into tariffs on pharmaceutical and chip imports. Additionally, Trump made headlines on Wednesday by announcing “big progress” in tariff talks with Japan, marking one of the first rounds of face-to-face negotiations since his sweeping duties on global imports raised fears of a global recession.
While the U.S. dollar index recovered on Thursday, it remained on track for a weekly decline. A weaker dollar makes gold more affordable for holders of other currencies, contributing to gold’s appeal.
Consultancy Metals Focus remains bullish on gold but anticipates near-term corrections as tactical players take profits or respond to potential margin calls triggered by further equity market liquidations.
In the broader precious metals market, silver fell by 0.9% to $32.46 an ounce, platinum slipped 1% to $957.18, and palladium dropped 2.3% to $949.72.
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