Gold prices edged lower in early Asian trading on Friday but remained on track for a fifth consecutive weekly gain. Investors weighed the impact of President Donald Trump’s newly announced trade tariffs, which heightened economic uncertainty and bolstered safe-haven demand.
Spot gold slipped 0.4% to $3,101.35 per ounce by 02:10 ET (06:10 GMT), retreating from its record high of $3,168.04 reached on Thursday. Gold futures for June delivery, however, ticked up 0.2% to $3,128.41 per ounce.
The slight pullback was largely driven by profit-taking after gold’s meteoric rise. “Gold joined the sell-off on Thursday after hitting a fresh record high. The rush to ship metal to the U.S. will also slow, given that gold was excluded from the new tariffs,” analysts at ING noted.
Trump’s Tariffs and Their Market Impact
Gold’s rally has been fueled by rising global tensions and concerns over Trump’s sweeping tariff policy. Announced on April 2, the tariffs impose a universal 10% duty on all U.S. imports, with much steeper levies for key trading partners:
- China: 54%
- Japan: 24%
- European Union: 20%
- India: 26%
- Taiwan: 32%
- Vietnam: 46%
While gold is often seen as a hedge against economic instability, traders took some profits after the initial surge. Still, the outlook for gold remains strong. ING analysts expect continued central bank purchases and market uncertainty to keep bullion prices elevated.
Other Precious Metals and Copper Trends
Gold’s movement also influenced other key metals:
- Platinum futures fell 0.4% to $950.65 an ounce.
- Silver futures dropped 1% to $31.60 an ounce.
Meanwhile, copper prices extended their losses as investors feared weaker demand due to Trump’s tariffs. Although copper was excluded from the current list, an ongoing U.S. investigation could lead to additional duties.
- London Metal Exchange Copper Futures slid 1.1% to $9,256.10 per ton.
- May Copper Futures edged up 0.3% to $4.4662 per pound.
With traders eyeing the upcoming U.S. nonfarm payrolls report for further signals on Federal Reserve policy, gold remains a focal point in global markets.