Gold experienced a price decrease on Thursday after reaching a record high earlier in the session. This price movement is attributed to investors taking profits amid persistent uncertainty surrounding US trade policy, which is influencing demand for safe-haven assets like gold.
- Gold fell below $3,330 per ounce on Thursday.
- Investors took profits after gold hit a record high.
- Demand for safe-haven assets is being driven by uncertainty in US trade policy.
- The Trump administration is considering tariffs on semiconductors and pharmaceuticals.
- Possible delays to auto tariffs and suspensions of levies on some tech products are also in play.
- Fed Chair Jerome Powell stated the US central bank will wait for greater clarity before adjusting interest rates.
- Powell expects Trump’s tariffs to generate higher inflation and slower growth.
- China is willing to resume trade talks under certain conditions.
The market environment suggests a tug-of-war for gold. While trade policy uncertainty is generating demand, the profit-taking implies some investors believe the recent surge may be unsustainable. Furthermore, the Federal Reserve’s cautious approach to interest rates, coupled with concerns about the inflationary impact of tariffs, adds another layer of complexity. The willingness of China to resume trade talks provides a glimmer of hope, but conditions are attached, leaving gold’s future dependent on how these factors play out.