Gold prices retreated modestly on Thursday after reaching a new all-time high earlier in the day, as investors locked in profits following a sharp rally driven by escalating trade tensions between the United States and China.
Spot gold dipped 0.6% to $3,321.89 an ounce as of 10:03 GMT, down from a session peak of $3,357.40. US gold futures also edged lower by 0.3% to $3,335.60. Despite the dip, gold has gained approximately 2.7% this week and is up nearly 28% for the year.
Analysts attributed the pullback to short-term profit-taking and a modest recovery in the US dollar.
“The reversal off fresh all-time highs can be attributed to some profit-taking on the highs,” said Ross Norman, an independent analyst. “A slightly firmer tone to an otherwise weak US dollar likely took the edge off gold.”
Gold surged 3.6% on Wednesday after US President Donald Trump ordered investigations into possible tariffs on a broad range of critical mineral, pharmaceutical, and semiconductor imports. The move added to investor unease amid an ongoing global trade conflict and contributed to a broader flight to safe-haven assets.
Federal Reserve Chair Jerome Powell added to market uncertainty in a speech at the Economic Club of Chicago on Wednesday, warning that the administration’s tariff policies could lead to slower economic growth and higher inflation. Powell also signaled that the central bank would remain cautious and data-dependent before making any changes to interest rates.
“Gold would benefit either way,” said Carsten Menke, analyst at Julius Baer.
He referenced both the risk of inflation and the potential for continued low interest rates, both of which tend to support gold demand.
In global markets, demand for physical gold remained subdued in countries like India, where rising prices discouraged buying. However, premiums in key markets like China held steady.
While some analysts see the current rally nearing its peak, others remain optimistic.
“Reduced participation in the rally by traditional gold buyers might signal the move is nearer the end than the beginning,” Norman noted. “But it’s hard to see a scenario where gold would correct lower just now, other than being technically overbought.”
Other precious metals followed gold’s lead on Thursday, with spot silver down 1.3% at $32.32 per ounce, platinum falling 1.2% to $955.60, and palladium dropping 2.5% to $947.94.
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