Gold prices experienced a decline on Thursday, retreating further from record highs due to the influence of a stronger dollar, as U.S. President Donald Trump continued his threats regarding increased trade tariffs.
In the UAE, gold rates have declined, with 24-carat gold decreasing by AED2 to a new price of AED349.25. Similarly, 22-carat, 21-carat, and 18-carat gold also saw drops of AED2.25, AED4.25, and AED1.75, bringing their prices to AED324.75, AED311.50, and AED267, respectively.
The yellow metal faced a significant wave of profit-taking after reaching record highs this week, even though the potential for higher trade tariffs and a cooling U.S. economy sustained safe haven demand. Gold prices struggled to surpass the $3,000 an ounce threshold.
Reports indicating that a U.S.-brokered peace agreement between Russia and Ukraine was imminent diminished some of the safe haven demand for gold. The overall metal prices were also pressured by the dollar’s strength, which was poised for mild weekly gains as it rebounded from a decline to 2-½ month lows. Spot gold dropped by 0.9 percent to $2,888.25/oz, while gold futures set to expire in April fell 0.9 percent to $2,903.39/oz by 00:59 ET (05:59 GMT).
Gold set for weekly losses despite scaling record high
Gold prices were anticipated to decline between 1.4 percent and 2 percent this week, as profit-taking followed the record highs achieved earlier in the week. Spot gold hit a peak of $2,956.37 an ounce. The yellow metal’s value was primarily supported by heightened safe haven demand, as Trump threatened to implement additional trade tariffs on key commodities and U.S. trading partners. He also announced a series of measures against China, which could potentially ignite a renewed trade conflict between the world’s largest economies.
On Wednesday, Trump stated that 25 percent tariffs on Europe were forthcoming, while he indicated that 25 percent duties on Canada and Mexico would likely be postponed until early April from their original deadline of next week.
Dollar recovers from near 3-month low; GDP, PCE data in focus
The broader metal prices faced pressure from the dollar’s recovery from its near three-month lows. Platinum futures declined by 0.2 percent to $973.20/oz, and silver futures fell by 0.7 percent to $32.050/oz. Among industrial metals, copper prices exhibited mixed trends following Trump’s threats this week to impose tariffs on imports of the red metal.
U.S. copper futures expiring in May were poised for a weekly gain, as any import tariffs could limit domestic supplies. However, benchmark copper futures on the London Metal Exchange were set for an over 1 percent weekly loss, given that U.S. import tariffs would restrict demand for foreign copper. The dollar was on track to break a three-week losing streak, with traders positioning themselves ahead of crucial fourth-quarter gross domestic product data expected later in the day. The PCE price index data, which is the U.S. Federal Reserve’s preferred measure of inflation, is scheduled for release on Friday and is also expected to influence the outlook for interest rates.
