Gold fell below $3,330 per ounce on Thursday, as investors took profits after bullion briefly hit a record high earlier in the session, fueled by ongoing demand for safe-haven assets amid persistent uncertainty surrounding U.S. trade policy.
Gold eases from record peak on profit-taking
The precious metal's earlier surge reflected heightened fears over the economic fallout from escalating global trade tensions, but profit-taking set in as traders reassessed the immediate risks and booked gains from the recent rally.
Market focus has remained fixated on the ever-shifting landscape of tariff headlines, with the Trump administration launching new trade probes targeting key sectors such as semiconductors and pharmaceuticals — both critical components of global supply chains. These fresh investigations come just days after the White House signaled a possible delay in implementing existing auto tariffs and announced the suspension of reciprocal levies on certain technology products, adding to the market’s whiplash over Washington's policy direction.
Federal Reserve Chair Jerome Powell reinforced a cautious tone
Meanwhile, Federal Reserve Chair Jerome Powell reinforced a cautious tone in his latest remarks, stating on Wednesday that the U.S. central bank would wait for greater clarity on economic conditions before making any adjustments to interest rates. Powell warned that the new wave of tariffs being considered by the Trump administration could stoke inflationary pressures while simultaneously slowing economic growth — a challenging combination that complicates the Fed’s dual mandate.
Elsewhere, market participants are closely watching the evolving dynamics around U.S.-China trade negotiations. Hopes for a resumption of talks were revived after Beijing signaled its willingness to return to the negotiating table, though it emphasized that any discussions must be based on conditions of equality, mutual respect, and a commitment to substantive dialogue. China's position suggests that while both sides may still find room for compromise, significant hurdles remain.
Concerns about the health of the global economy
In the background, broader concerns about the health of the global economy, geopolitical risks, and central bank policy paths continue to support underlying demand for gold, even as short-term corrections occur. Analysts expect that unless there is a sustained de-escalation of trade tensions or a meaningful resolution to ongoing disputes, gold prices are likely to remain well-supported over the medium term, with further volatility anticipated as negotiations unfold.
