Gold fell more than 2% on Thursday, easing from an all-time high, as a wider market selloff triggered by U.S. President Donald Trump's import tariffs infected bullion traders.
Spot gold fell 1.1% to $3,098.73 as of 10:04 a.m. EDT (1404 GMT) after earlier scaling a record of $3,167.57.
U.S. gold futures fell 1.4% to $3,121.90.
Traders attributed the dip to some profit-taking and margin calls in other asset classes likely prompting investors selling some of their gold holdings to cover losses.
"While the whole tariff imbroglio has weighed on the dollar and should be good for gold, but faced with potential margin calls in various markets, leveraged participants often have to sell whatever they can," said Tai Wong, an independent metals trader.
Trump's tariffs drove a sharp slide in financial markets because of concerns they could dampen economic growth. [MKTS/GLOB]
However, gold's overall trajectory appeared intact, with the safe haven having surged over $500 so far this year. [GOL/ETF]
David Meger, director of metals trading at High Ridge Futures, termed gold's moves "a pullback or retracement within the sideways to higher trend".
Central banks are expected to help sustain gold's rally this year with buying aimed at further diversifying reserves away from the dollar due to risks stemming from Trump's policies.
But while the rally's momentum may push prices higher in the first half, a mix of physical and financial market factors could pressure gold by end-2025, HSBC said in a note, forecasting prices to average $3,015.
Source: Investingt.com
