Gold Down as Trump Tariff Surprise Triggers Selloff from Record High
Gold is moving further away from its recent record high, swept away by the pessimistic mood sweeping global markets following U.S. President Donald Trump’s more aggressive-than-expected tariff agenda.
The precious metal initially surged to a new record high of $3,167.84 an ounce on Thursday following Trump’s “reciprocal” tariff announcement. However, gold closed lower in the previous session, and fell as much as 1.2% on Friday as the magnitude of the tariffs and their potential negative impact on the global economy became clear.
On Thursday, equity markets suffered one of their worst days since the height of the coronavirus pandemic, with about $2.5 trillion wiped off the S&P 500 alone. While gold is typically seen as a safe haven in times of heightened uncertainty, it can also join a real selloff as investors are forced to raise cash to offset losses in other markets.
Despite the shock from the levies, gold is set to benefit this year from an increasingly volatile trade, macroeconomic and geopolitical environment. The precious metal has surged nearly 19% this year after a sharp rally in 2024 that was largely driven by massive central bank buying, strong demand in Asia and the Federal Reserve’s monetary easing.
Spot gold fell 0.2% to $3,110.41 an ounce at 11:44 a.m. in London, still on track for a fifth weekly gain. Silver—which plunged 6% on Thursday in its biggest one-day drop since June—also fell. Platinum and palladium fell, after selling off heavily in the previous session.
Source: Bloomberg
