Gold prices edged lower in Asian trading on Friday, retreating from the all-time high of $3,058 per ounce reached earlier in the week.
Despite the pullback, the precious metal remained on course for a third consecutive weekly gain as investors assessed United States economic policy, geopolitical risks, and inflation concerns.
By 3:35 pm AEDT (4:35 am GMT), spot gold was down $13.85, or 0.5%, at $3,030.81 per ounce.
However, many market participants view any retracement as a buying opportunity. Concerns over U.S. economic stability, driven by President Donald Trump’s tariff policies, and ongoing expectations of two Federal Reserve interest rate cuts this year continue to support gold’s appeal as a safe-haven asset.
Federal Reserve Chair Jerome Powell, in his post-policy meeting press conference on Wednesday, signalled that rate cuts were not imminent but reaffirmed projections for two reductions in 2025.
Geopolitical tensions also underpin gold’s resilience. In the Middle East, at least 91 Palestinians were killed in airstrikes across Gaza on Thursday, according to Palestine’s health ministry, after Israel resumed military operations.
Meanwhile, uncertainty persists over the Russia-Ukraine conflict, with markets watching for potential escalations.
