Gold Prices Retreat Slightly After Reaching Record High Amid Trade Tensions

Gold prices experienced a slight pullback on Thursday after reaching an all-time high earlier in the day. Spot gold declined by 0.6% to $3,321.89 per ounce, retreating from a record peak of $3,357.40. U.S. gold futures also edged down by 0.3% to $3,335.60.

The recent surge in gold prices has been fueled by escalating trade tensions, particularly following President Donald Trump’s announcement of new tariffs targeting critical mineral, pharmaceutical, and semiconductor imports. Federal Reserve Chair Jerome Powell warned that these tariffs could lead to slower economic growth and heightened inflation, prompting investors to seek safe-haven assets like gold.

Analysts from Goldman Sachs and UBS have raised their gold price forecasts, with Goldman predicting prices could reach between $3,650 to $3,950, and potentially as high as $4,500 if recession risks materialize.

Despite the recent dip, overall sentiment toward gold remains positive, with analysts suggesting the price corrections are likely temporary. The demand for gold continues to be supported by investor uncertainty and geopolitical instability.