Gold Prices Dip as Investors Secure Profits

NEW YORK: Gold prices experienced a slight decrease on Thursday following a significant surge in the prior session. This retreat occurred as investors capitalized on profits before the extended weekend. Nevertheless, a weaker dollar and growing trade tensions between the United States and China sustained the price of bullion above $3,300 per ounce.

Spot gold declined by 0.5% to $3,326.51 an ounce as of 08:58 a.m. ET (1258 GMT), after peaking at a record high of $3,357.40 earlier in the day. So far this week, bullion has increased by nearly 3%.

U.S. gold futures saw a decrease of 0.2% at $3,339.90. According to Tai Wong, an independent metals trader, gold might face a short-term correction after its impressive performance this week, especially with the upcoming long weekend.

Wong added that the possibility of a trade agreement announcement over the weekend, potentially with Japan, presents some risk. However, he believes gold’s overall trajectory remains upward due to ongoing uncertainty and significant concerns impacting asset markets.

On Wednesday, gold prices jumped by 3.6% after U.S. President Donald Trump initiated an investigation into potential tariffs on all crucial mineral imports, alongside reviews of pharmaceutical and chip imports.

Simultaneously, President Trump highlighted “substantial progress” in tariff discussions with Japan on Wednesday. These discussions represent some of the initial face-to-face negotiations since his imposition of duties on global imports, which previously unsettled markets and heightened fears of a recession. The dollar index showed signs of recovery on Thursday but was still on track for a weekly decline.