Gold Prices Dip Amid Economic Concerns but Maintain Positive Weekly Trend
In Asian trading on Friday, gold prices experienced a decline from record highs, yet the metal was on track for a positive week fueled by increasing trade tariff threats from U.S. President Donald Trump. The fluctuations in gold prices came against a backdrop of rising haven demand as investor anxiety about the U.S. economy continues to grow.
Economic Concerns Affecting Gold
Throughout the week, a drop in the U.S. dollar has also been beneficial for gold prices. Lingering doubts around the health of the U.S. economy, particularly in terms of private spending, have drawn attention. This sentiment has been reinforced by disappointing retail sales figures and cautious guidance from retail giant Walmart, which failed to meet market expectations.
Despite a high demand for gold driven by tariffs and economic worries, prices retreated from their peak earlier in the week. On Friday, spot gold was down 0.5% to $2,925.06 an ounce, while April futures similarly fell 0.5% to $2,941.49 an ounce. Earlier in the week, spot prices had soared to a peak of $2,954.89 an ounce, demonstrating the volatility in the market.
Gold Maintains Positive Momentum
Despite the recent dip, gold is poised to record its eighth consecutive weekly gain, marking a notable trend in 2025. The yellow metal is projected to rise by approximately 1.6% this week, driven by ongoing concerns regarding Trump’s robust tariff agenda and protectionist policies.
President Trump recently threatened 25% tariffs on a range of imports including automobiles, pharmaceuticals, semiconductors, and lumber, effective as soon as early April. Additionally, he has hinted at imposing reciprocal tariffs on major U.S. trading partners, thereby stoking fears of an impending global trade war. Such concerns are a considerable factor in driving safe haven demand for gold, which had already been buoyed leading up to Trump’s inauguration last January.
Mixed Performance in Precious Metals
While gold found some support, other precious metals had varying performances this week. Silver prices, for instance, were tracking gains in gold and saw an increase of 1.2% for the week. Conversely, platinum was set to decline by approximately 3.2%.
Industrial Metals Experience Losses
Among industrial metals, copper prices are heading for a weekly loss due to profit-taking after a recent surge. The benchmark price for copper on the London Metal Exchange fell by 0.4% to $9,522.80 a ton, while March futures dropped 0.8% to $4.5750 a pound. Both contracts are down as much as 1.9% for the week.
Copper has benefitted from optimistic sentiments towards China, particularly regarding developments in the artificial intelligence sector, which relies heavily on copper for infrastructure. However, concerns regarding escalating tensions over trade policies between the U.S. and China have cast a shadow on this outlook.
Conclusion
As the week draws to a close, the broader picture for gold remains one of resilience, with positive gains expected ahead despite recent price declines. The ongoing trade tariff discussions and fluctuations in economic indicators bolster the case for safe haven investments. With global economic sentiment remaining shaky, gold continues to be a focal point for investors navigating these uncertain waters.
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