https://arab.news/nyzwt
- Gold hit record high of $3,057.21 per ounce on Thursday
- Silver, platinum, palladium poised for weekly declines
BENGALURU: Gold prices retreated on Friday as the dollar firmed and investors booked profits after bullion hit three successive all-time peaks this week, buoyed by safe-haven demand amid trade war concerns and hopes of a rate cut by the Federal Reserve later this year.
Spot gold was down 0.4 percent to $3,033.36 an ounce as of 11:48 a.m. Saudi time. US gold futures eased 0.1 percent to $3,039.60.
Bullion was on track for a third straight weekly gain, having added 1.6 percent so far this week. It hit an all-time high of $3,057.21 per ounce on Thursday.
“Spot gold is seeing a healthy pullback after surging to fresh record highs above $3k, with the dollar’s recent resilience also prompting gold to ease lower,” said Han Tan, Exinity Group’s chief market analyst.
The US dollar was up 0.2 percent on Friday making greenback priced bullion more expensive for overseas buyers.
“Gold’s uptrend is set to remain intact as long as risk-on sentiment fails to find its grip, especially as the April 2 deadline draws near for the next wave of US tariffs,” Tan said.
US President Donald Trump still intends for new reciprocal tariff rates to take effect on that date.
A whirlwind of factors, including geopolitical tensions and economic uncertainty, have propelled gold to 16 record highs, with four above the crucial $3,000 mark.
“ETP (Exchange Traded Products) demand could continue to lead gold prices higher, even in the face of weakening physical demand across India and China,” said Standard Chartered analyst Suki Cooper in a note dated Thursday.
Gold, traditionally viewed as a safe-haven investment during times of inflation or economic volatility, tends to do well in a low-interest rate environment.
The Fed held its benchmark rate steady as expected on Wednesday. Policymakers see the central bank delivering two quarter-percentage-point cuts by year-end.
Spot silver slid 1.5 percent to $33.04 an ounce, platinum lost 0.4 percent to $981.05, and palladium shed 0.4 percent to $948.43. All three were poised for weekly losses.