Gold prices dipped on Friday as markets reacted to U.S. President Donald Trump’s latest tariff announcements, prompting investors to recalibrate their expectations amid fears of an economic slowdown. By 0510 GMT, spot gold fell 0.4% to $3,101.50 per ounce, retreating from its earlier highs. Despite the decline, the metal is poised to notch a fifth straight week of gains, underscoring its enduring allure as a safe-haven asset during turbulent times.
The downturn followed Trump’s unveiling of a 10% universal tariff on imports into the U.S., alongside steeper duties targeting key trading partners. The move, intended to bolster domestic industries, has instead fueled worries about retaliatory measures from global powers, potentially igniting a broader trade conflict. U.S. gold futures, meanwhile, ticked up slightly by 0.2% to $3,125.10, recovering marginally from a sharp 2.5% plunge in the prior session—the steepest drop in weeks after gold hit an all-time peak of $3,167.57.
Analysts suggest the tariffs have shifted market dynamics. “Gold thrives on unpredictable chaos—like geopolitical shocks—but once the fog clears, its momentum can fade,” said Priya Malhotra, a senior commodities strategist at Horizon Insights. “Trump’s tariffs have given traders a clearer view of risks, trimming gold’s uncertainty-driven premium.”
Attention now turns to the upcoming U.S. non-farm payrolls data, a critical indicator that could sway the Federal Reserve’s next steps on interest rates—an influential factor for non-yielding assets like gold. Lower rates typically bolster gold’s appeal, while a stronger dollar, spurred by tariff-induced growth concerns, could cap its upside.
Elsewhere in the metals market, silver shed 1.2% to $31.48 per ounce, platinum slipped 0.3% to $949.70, and palladium gained 0.5% to $933.50, reflecting mixed responses to the unfolding economic narrative. As trade tensions simmer, gold’s trajectory hangs in the balance.
