VINACHEM

Gold prices fell in Asian trade on Thursday, pulling back further from record highs on pressure from a stronger dollar, as U.S. President Donald Trump kept up his threats of increased trade tariffs.

The yellow metal was hit with a wave of profit-taking from record highs this week, even as the prospect of higher trade tariffs and a cooling U.S. economy kept safe haven demand in play. Gold prices struggled to cross the $3,000 an ounce level.

Reports that a U.S.-brokered peace deal between Russia and Ukraine was close undermined some safe haven demand for gold.

Broader metal prices were also pressured by strength in the dollar, which was now set for mild weekly gains as it recovered from a slump to 2-½ month lows.

Spot gold fell 0.9% to $2,890.73/oz, while gold futures expiring in April fell 0.9% to $2,903.39/oz by 00:59 ET (05:59 GMT).

Gold set for weekly losses despite scaling record high 

Gold prices were set to lose between 1.4% and 2% this week, as they were hit with profit-taking after reaching record highs near the beginning of the week. Spot gold reached a peak of $2,956.37 an ounce.

The yellow metal was buoyed chiefly by increased safe haven demand, as Trump threatened to impose more trade tariffs on key commodities and U.S. trading partners. Trump also outlined a slew of measures against China, which could spark a renewed trade war between the world’s biggest economies.

Trump on Wednesday said 25% tariffs against Europe were coming soon, but said that 25% duties against Canada and Mexico will likely be postponed to early April from their initial deadline of next week.

Dollar recovers from near 3-mth low; GDP, PCE data in focus 

Broader metal prices were pressured by a recovery in the dollar from near three-month lows.

Platinum futures fell 0.2% to $973.20/oz, while silver futures fell 0.7% to $32.050/oz.

Among industrial metals, copper prices were a mixed bag after Trump this week threatened to impose tariffs on imports of the red metal.

U.S. copper futures expiring in May were set for a weekly gain, given that any import tariffs are likely to limit domestic supplies. But benchmark copper futures on the London Metal Exchange were set for an over 1% weekly loss, given that U.S. import tariffs will limit demand for overseas copper.

The dollar was set to snap three straight weeks of losses. It saw some positioning ahead of key fourth-quarter gross domestic product data due later in the day.

PCE price index data- the Federal Reserve’s preferred inflation gauge- is due on Friday, and is also expected to factor into the outlook for interest rates.  – Source: investing.com