Gold prices slipped in Asian trading on Friday, extending their retreat from record highs as a stronger U.S. dollar pressured the metal. Traders reassessed their rate cut expectations, with growing conviction that the Federal Reserve will maintain its current monetary policy in the near term.
Despite the pullback, gold remains above the critical $3,000 per ounce mark, supported by safe-haven demand amid heightened economic uncertainty. Investors continue to monitor the impact of President Donald Trump’s aggressive trade tariffs and the Federal Reserve’s cautious stance on inflation.
- Spot gold: Down 0.5% to $3,029.61 per ounce.
- Gold futures (May contract): Down 0.2% to $3,037.09 per ounce.
- Recent peak: Gold hit a record $3,057.51 per ounce earlier this week.
Rate Cut Uncertainty Weighs on Gold
Gold’s decline was largely driven by a rebound in the U.S. dollar, which erased losses seen after Wednesday’s Federal Reserve meeting. The central bank kept rates steady and signaled no immediate cuts, citing persistent inflation concerns and the uncertain effects of Trump’s tariff policies.
Market expectations of imminent rate cuts have faded as the Fed:
- Held interest rates unchanged, signaling patience amid inflation risks.
- Revised its 2025 growth forecast downward while raising its inflation outlook.
- Dismissed Trump’s repeated calls for rate reductions.
With rates likely to stay higher for longer, investors moved back into the dollar, dampening gold’s short-term momentum.
Other precious metals also saw declines:
- Platinum: Down 0.7% to $987.15 per ounce.
- Silver: Fell 0.8% to $33.73 per ounce.
Copper Retreats After Rally on Tariff Speculation
Copper prices pulled back on Friday after strong gains earlier in the week, fueled by speculation over potential U.S. tariffs on copper imports and supply constraints in China.
- London Metal Exchange (LME) copper: Down 0.2% to $9,910.30 per ton after topping $10,000 earlier this week.
- May copper futures: Declined 0.3% to $5.1020 per pound.
The red metal initially surged as reports surfaced that Trump’s administration is considering a 25% tariff on all U.S. copper imports, a move that could significantly tighten domestic supply.
Meanwhile, in China, several copper smelters have temporarily shut down due to raw material shortages, further limiting global supply. Analysts expect these disruptions to support prices in the coming months, despite Friday’s modest pullback.
With traders weighing economic policies, inflation risks, and trade developments, volatility is likely to persist across both precious and industrial metals in the near term.