Gold prices pulled back on Thursday after a sharp rally, slipping from record highs as global market turbulence spilled over into the bullion market.
The downturn came as investors reacted to newly imposed tariffs, which have fueled fears of slower economic growth.s
Earlier in the session, spot gold surged to a historic peak of $3,167.57 before retreating by 0.85% to around $3,106.99. Meanwhile, U.S. gold futures settled down 1.4% at $3,121.70. Market analysts believe the drop is partly due to profit-taking and margin calls, as traders liquidate profitable gold positions to cover losses from other assets.
According to Peter Grant, vice president and senior metals strategist at Zaner Metals, the sudden sell-off resulted from deleveraging pressures, prompting some investors to take advantage of the dip as a buying opportunity. Grant noted that while some have been offloading gold to meet margin requirements, the metal’s long-term appeal as a safe haven remains intact.
The tariff announcement, which sparked a broad market slump, has heightened concerns about its potential impact on economic growth. Despite the short-term decline, gold remains in a strong upward trend, having gained over $500 this year alone.
David Meger, director of metals trading at High Ridge Futures, described the current dip as a temporary retracement within a broader bullish trend. As central banks continue to purchase gold to reduce reliance on the dollar amid geopolitical uncertainties, the metal’s value is expected to remain robust.
However, some analysts, including those at HSBC, caution that while gold may continue rising in the first half of the year, a combination of physical and financial factors could weigh on prices by the end of 2025. HSBC projects the average price to hover around $3,015, as market dynamics evolve.
In the face of economic uncertainty, gold’s role as a safe-haven asset remains prominent, with investors closely monitoring how market forces will shape its trajectory in the coming months.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/gold-dips-from-record-high-as-market-turmoil-sparks-profit-taking/