Spot gold was down 0.5% at $3,097.99 per ounce (oz), as the markets' bloodbath continued on Thursday in the United States, with investors today reassessing their risk in the wake of tariffs.
U.S. gold futures were the calm through the market storm, however remaining flat at 0.1% to $3,118.90 per ounce (oz).
The steadying came after it dropped >2% yesterday as a broader market sell-off saw one of the worst single days in the market in years and appetite for investing anywhere in the current market fell off a cliff.
It's pulled back from its record high this week of US$3,167.57/oz.
"Gold tends to rally amid difficult-to-price uncertainty - like the start of a war - but tends to lose that support once markets learn how to price the risks involved," Tastylive head of global macro Ilya Spivak said speaking with Reuters.
"The Trump administration seems to have picked a road, and while sentiment clearly doesn't like it, at least the path of least resistance is more visible and easier to price. That is trimming some of gold's 'market confusion' premium."
Trump said he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on some of the country's biggest trading partners, which have threatened to ratchet up a trade war with the White House over steep price increases.
The all-time high spot prices for gold above $3,100/oz were hit consistently throughout the week, having surged a whopping 14% already this year on the back of a record 27% increase over the whole of 2024.
Gold still expected rise
Amid escalating concerns over economic uncertainty fueled by President Donald Trump's ‘scorched earth’ trade policies, U.S. consumer confidence has experienced a notable decline.
That’s been coupled with rising inflation expectations and now extremely heightened market volatility.
As these apprehensions intensified leading up to the tariffs' date, bullion broke through the US$3,100/oz barrier.
And while gold, like other markets are hesitant, Macquarie’s head of commodities strategy Marcus Garvey says his firm still thinks there are some materially bullish developments likely to come for gold, raising its top end price target to US$3,500/oz.
“I don’t really see things that would suggest to us that this rally is in an area that’s become frenzied or overextended.”
That outlook may need an update in the coming days as a dramatic reshuffle of the global economy may be in store.
