Gold eases after record high on knock-on effect of wider selloff
Gold prices trimmed losses on Thursday after falling over 2% from an all-time high, as a wider market selloff triggered by U.S. President Donald Trump's import tariffs infected bullion traders.
Spot gold fell 0.85% to $3,106.99 as of 01:47 a.m. EDT (1747 GMT) after scaling to a record high of $3,167.57 earlier in the session.
U.S. gold futures settled 1.4% lower at $3,121.70.
Traders attributed the dip to some profit-taking and margin calls in other asset classes likely prompting investors selling some of their gold holdings to cover losses.
"As the market sold-off on the deleveraging pressures, the market was looking for buying opportunities on the dip," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
"People were selling profitable positions to cover those margins, but I think in the long run they'll continue to look for safe-havens and gold is certainly that."
Trump's tariffs drove a sharp slide in financial markets because of concerns they could dampen economic growth.
Central banks are expected to help sustain gold's rally this year with buying aimed at further diversifying reserves away from the dollar due to risks stemming from Trump's policies.
Silver slipped 5.9% to $32.01, its lowest since March 4. While it usually follows gold, silver is more exposed to wider market fluctuations considering its industrial applications.
Source: Reuters
