Gold price retreats further from all-time peak amid modest pickup in USD demand
Gold price (XAU/USD) extends its steady intraday retracement slide from the vicinity of the record high touched the previous day and drops to a fresh daily low, around the $2,920 area during the first half of the European session on Friday.
The US Dollar (USD) attracts some buyers and reverses a part of the previous day's slump to its lowest level since December 10. This, along with the Federal Reserve's (Fed) hawkish stance, prompts some profit-taking around the non-yielding yellow metal amid slightly overstretched conditions on the daily chart.
However, worries that US President Donald Trump's tariff plans could trigger a global trade war might continue to act as a tailwind for the safe-haven Gold price. Furthermore, expectations that Trump's protectionist policies would reignite inflation could act as a tailwind for the bullion, which is seen as a hedge against rising prices.
This, in turn, makes it prudent to wait for strong follow-through selling before positioning for any meaningful corrective slide for the XAU/USD pair, which remains on track to register gains for the eighth consecutive week.
Source: FXstreet