Gold prices pulled back modestly during Asian trade on Thursday, easing from fresh all-time highs earlier in the session as investors digested ongoing geopolitical concerns and looked toward upcoming economic data.
By 3:35 pm AEST (5:35 am GMT) spot gold price was $6.37 or 0.2% lower at US$3,336.19 - the precious metal is up 3% for the week.
The latest rally has been driven by escalating trade tensions, particularly United States President Donald Trump’s push for tariffs across key global trading partners.
Investor appetite for safe-haven assets has increased amid persistent fears of a potential U.S. recession. However, the pace of gold’s ascent has slowed, with some resistance emerging following comments from Federal Reserve Chair Jerome Powell.
Speaking at the Economic Club of Chicago on Wednesday, Powell said: "for the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
He also warned that new U.S. tariffs could raise stagflation risks by simultaneously slowing growth and fuelling inflation.
In a client note, ANZ analysts wrote: "A combination of heightened uncertainty around tariffs, an anticipated slowdown in economic growth, inflation fears and increasing prospects of lower interest rates set a perfect backdrop for the precious metal to record further gains."
ANZ added that central bank demand would remain strong amid growing mistrust in U.S. assets, expecting official gold purchases to remain between 900 and 1,000 tonnes this year.
Investors will now turn their attention to U.S. jobless claims and housing data later in the day, which could provide fresh insights into the economic outlook.
