Gold prices pulled back slightly on Thursday after earlier reaching a record high, as investors booked profits following U.S. President Donald Trump’s sweeping tariff announcement that sparked a rush into safe-haven assets.
Spot gold slipped 0.5% to $3,119.09 by 1015 GMT after peaking at $3,167.57 earlier in the day. U.S. gold futures also dipped 0.9% to $3,138. The retreat comes after a strong run, with gold gaining 19% so far in 2025, buoyed by market uncertainty, strong central bank buying, and increasing interest in gold-backed ETFs.
“The outlook for economic growth has turned gloomy amid weaker trade, rising costs, and heightened geopolitical risk — a perfect storm for gold,” said Adrian Ash, director of research at BullionVault.
The surge was triggered by Trump’s announcement Wednesday of a new 10% baseline tariff on most U.S. imports, alongside higher levies on numerous trading partners. The aggressive trade move rattled global markets over fears of slowed growth and rising inflation.
Despite the sweeping duties, a White House fact sheet clarified that imports of certain goods, including gold, copper, energy, and specific minerals not sourced domestically, would be exempt. Nonetheless, gold inventories in COMEX warehouses have increased on fears that tariffs might eventually restrict inflows.
Analysts at ANZ believe strategic fund inflows and continued central bank buying could push gold prices toward $3,200 in the coming six months.
Meanwhile, silver prices dropped sharply, falling 4.4% to $32.54, marking the lowest level since March 11. Reliance Securities’ Jigar Trivedi said recent tariffs on semiconductor imports — where silver is a key material — have raised demand concerns, fueling the selloff.
Platinum and palladium also slipped, with platinum down 2.4% to $960.45 and palladium off 1.6% at $954.75.
