Despite safe haven demand amidst prospects of higher tariffs and a cooling US economy, the yellow metal experienced profit-taking from record highs and struggled to cross the $3,000 per ounce level.
Reports of a potential US-brokered peace deal between Russia and Ukraine further dampened safe haven demand.
The dollar, recovering from recent lows, also exerted pressure on broader metal prices. Spot gold fell 0.9% to $2,890.73/oz, and gold futures expiring in April fell 0.9% to $2,903.39/oz by 00:59 ET (05:59 GMT).
Despite reaching record highs, gold is expected to experience weekly losses.
Gold prices reached a record high of $2,956.37 an ounce at the start of the week, driven primarily by safe-haven demand due to Trump’s threat of additional trade tariffs on key commodities and US trading partners. Trump also outlined measures against China, which could reignite a trade war between the world’s largest economies. However, profit-taking has hit gold prices, and they are now expected to fall between 1.4% and 2% for the week.
On Wednesday, Trump announced upcoming 25% tariffs against Europe, but said that 25% duties against Canada and Mexico will likely be postponed to early April from their initial deadline of next week.
The dollar’s recovery from a near three-month low put pressure on broader metal prices. Platinum futures fell 0.2% to $973.20/oz, and silver futures fell 0.7% to $32.050/oz.
Copper prices were mixed after Trump threatened to impose tariffs on imports of the red metal this week. US copper futures expiring in May were set for a weekly gain, as any import tariffs are likely to limit domestic supplies. Benchmark copper futures on the London Metal Exchange were set for an over 1% weekly loss, as US import tariffs will limit demand for overseas copper.
The dollar was set to snap three straight weeks of losses. Investors positioned themselves ahead of key fourth-quarter gross domestic product data due later in the day. The PCE price index data – the Federal Reserve’s preferred inflation gauge – is due on Friday, and is also expected to factor into the outlook for interest rates.
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