Gold heads for first weekly loss of 2025 amid tariff concerns
Gold is on track for its first weekly loss of 2025 as investors took profits following a record-breaking rally.
The drop comes as concerns rise over President Donald Trump’s tariff plans, which have contributed to a stronger US dollar.
Bullion traded near $2,860 an ounce, down for a second straight session. That’s after Trump said Thursday that tariffs on Canada and Mexico were set to be implemented on March 4, and he would impose additional levies on Chinese imports, News.Az reports, citing Bloomberg.
The greenback climbed, making the precious metal less appealing for foreign investors as it’s denominated in the currency.
Gold’s decline in recent days has come after increasing haven demand helped push prices to a record high of $2,956.19 an ounce on Monday. Widespread uneasiness about the impact of Trump’s tariffs on US inflation, trade, the global economy and geopolitics have underscored bullion’s role as a store of value in uncertain times. While those concerns haven’t eased, this week bullion has been more impacted by the rising dollar and profit taking.
Later Friday, investors will analyze the US core personal consumption expenditures price index — which excludes often-volatile food and energy costs — for more clues about the monetary policy path. The Federal Reserve’s preferred inflation gauge is expected to cool to the slowest pace since June. Lower rates are positive for non-interest bearing bullion.
Spot gold eased 0.6% to $2,859.76 an ounce at 12:35 p.m. in Singapore, on track for a weekly decline of about 2.6%. The Bloomberg Dollar Spot Index gained 0.1%, following its 0.6% spike in the previous session. Silver dipped, while platinum and palladium were flat.
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