Gold moved further away from its latest record high, swept up in the pessimistic mood that hit global markets in the wake of US President Donald Trump’s more-aggressive-than-expected tariff agenda.
The precious metal initially surged to a fresh all-time high of $3,167.84 an ounce on Thursday following Trump’s “reciprocal” tariff announcements, which placed baseline import levies of 10% on all nations, rising to as much as 49%. Still, gold closed lower in the previous session, and slipped as much as 0.9% Friday as the magnitude of the duties and their potential negative impact on the global economy became apparent.
On Thursday, markets endured one of the worst days for stocks since the height of the coronavirus pandemic, with about $2.5 trillion erased from the S&P 500 alone. While gold is typically seen as a safe haven in times of heightened uncertainty, it can also join pronounced selloffs as investors are forced to raise cash to offset losses in other markets.
Despite the jolt caused by the levies, gold stands to benefit this year from an increasingly volatile trade, macroeconomic and geopolitical environment. The precious metal has surged almost 18% this year after a ferocious run in 2024 that was largely driven by massive central bank purchases, robust demand in Asia, and Federal Reserve monetary easing.
Spot gold was down 0.7% at $3,093.02 an ounce at 11:18 a.m. in Singapore, still on track for a fifth weekly gain. Silver — which plunged 6% on Thursday in its biggest one-day fall since June — also fell. Platinum and palladium were down, after hefty selloffs in the previous session.
–With assistance from Atul Prakash.
©2025 Bloomberg L.P.
