Gold on Track for Worst Week of the Year as Tariff Threats Grow
Gold is on track for its first weekly loss of 2025 as investors book profits from a record-breaking rally amid growing concerns over President Donald Trump’s tariff agenda, which has strengthened the U.S. dollar.
Bullion was trading near $2,860 an ounce, down for a second straight session. That’s after Trump said Thursday that tariffs on Canada and Mexico would take effect on March 4, and he would impose additional levies on Chinese imports. The U.S. dollar has strengthened, making the precious metal less attractive to foreign investors because it is denominated in the currency.
Gold’s decline in recent days came after rising safe-haven demand helped push prices to a record high of $2,956.19 an ounce on Monday. Widening uncertainty about the impact of Trump’s tariffs on U.S. inflation, trade, the global economy and geopolitics has underscored bullion’s role as a store of value in uncertain times. While those concerns have not abated, bullion has been more exposed this week to a rising dollar and profit-taking.
Later on Friday, investors will look to the U.S. core personal consumption expenditures price index — which excludes often volatile food and energy costs — for further clues on the path of monetary policy. The Federal Reserve’s preferred inflation gauge is expected to cool to its slowest pace since June. Lower interest rates are positive for non-yielding bullion.
Spot gold fell 0.5% to $2,861.92 an ounce as of 10:15 a.m. in London, heading for a weekly decline of about 2.5%. The Bloomberg Dollar Spot Index rose 0.1%, after jumping 0.6% in the previous session. Silver, platinum and palladium all traded in narrow ranges.
Source: Bloomberg
