Gold Dips from Record High as Market Turmoil Sparks Profit-Taking
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.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
