Gold Prices Slip from Record Highs but Remain on Track for Weekly Gains
Gold prices dipped in Asian trade on Friday, retreating further from record highs hit earlier in the week. However, the precious metal remained on course for another weekly gain, as growing concerns over U.S. trade policies under President Donald Trump bolstered safe-haven demand.
Gold Benefits from Tariff Jitters and a Weaker Dollar
Gold prices have been supported by fears of escalating trade tensions, after Trump threatened new tariffs on key industries, including automobiles, pharmaceuticals, semiconductors, and lumber. The proposed 25% tariffs, expected as early as April, have heightened concerns of a global trade war, pushing investors toward gold as a hedge against economic uncertainty.
Additionally, a weaker U.S. dollar provided further support for gold this week. Although the Federal Reserve has maintained its stance that interest rates will stay higher for longer, growing worries over U.S. consumer spending have weighed on the greenback. Recent weak retail sales data and disappointing guidance from retail giant Walmart (NYSE: WMT) have fueled concerns about the overall health of the U.S. economy.
Gold Prices Slip but Hold Strong Weekly Gains
On Friday, spot gold fell 0.5% to $2,925.06 an ounce, while gold futures (April contracts) dropped 0.5% to $2,941.49 an ounce. This pullback came after spot prices hit a peak of $2,954.89 earlier in the week, marking record-high levels.
Despite this dip, gold was still set for a 1.6% weekly gain, marking its eighth consecutive week of gains. The yellow metal has consistently climbed throughout 2025, largely due to persistent fears over Trump’s protectionist trade policies and tariff agenda.
Gold’s Rally Fueled by Economic and Political Uncertainty
Investors have flocked to gold as a safe-haven asset, especially given the uncertainty surrounding U.S. economic policies. The metal also saw strong demand leading up to Trump’s inauguration in January, as markets anticipated his aggressive trade stance.
With continued tariff threats and concerns over global economic stability, gold’s bullish momentum could extend in the coming weeks, especially if trade tensions escalate further.
