Gold price retreats from record as it joins market selloff triggered by tariffs
Gold prices hit another record on Thursday but subsequently swung to a loss as part of a wider market selloff that followed US President Donald Trump’s sweeping reciprocal tariffs.Spot gold was down 0.5% to $3,118.75 per ounce by 10:30 a.m. ET after scaling a record of $3,167.57 earlier. US gold futures fell 0.8% to $3,140.20 an ounce in New York.Traders attributed gold’s dip to profit-taking and investors selling some of their bullion holdings to cover losses in other asset classes. The S&P 500 fell 4.4% on the day, while Nasdaq lost 8.7%.“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,” Tai Wong, an independent metals trader, told Reuters.Still, the prospects of gold remain positive given the metal is widely regarded as a safe haven in times of heightened uncertainty, and Thursday’s selloff could well be a rare event triggered by Trump’s biggest move yet to shake up international trade.David Meger, director of metals trading at High Ridge Futures, termed gold’s moves “a pullback or retracement within the sideways to higher trend”.Analysts point to central banks looking diversifying reserves away from the US dollar as a key factor in sustaining high gold prices. Michael Hsueh of Deutsche Bank also noted the accumulation of gold-backed exchange-traded funds and increased allocation into gold by Chinese insurance firms as additional support for the metal.However, 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.Gold was one among many metals exempted from the tariffs, according to a White House fact sheet. For now, that would reduce the big price divergences between the US and global markets as seen in the copper market.Meanwhile, shares of the major gold miners were mostly in the red, with the biggest producer Newmont (TSX: NGT) down 0.9% and Barrick Gold (TSX: ABX) falling 0.5%.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
