By Brijesh Patel
(Reuters) – Gold prices slipped on Thursday after a sharp rise in the previous session as investors booked profits ahead of a long weekend, although softer dollar and escalating U.S.-China trade tensions kept bullion above the $3,300 per ounce level.
Spot gold fell 0.8% to $3,317.87 an ounce as of 01:45 p.m. ET (1745 GMT), after touching a record high of $3,357.40 earlier in the session. Bullion has gained more than 2% this week.
U.S. gold futures settled 0.5% lower at $3,328.40.
“I think (gold) is quite overbought and there’s some profit taking at work… However, big dips in gold will be bought into because the landscape going into 2025 is still very uncertain,” said Marex analyst Edward Meir.
Gold prices surged 3.6% on Wednesday, driven by U.S. President Donald Trump’s order to open a probe into potential tariffs on all critical mineral imports, in addition to reviews into pharmaceutical and chip imports.
“There is some risk that a trade deal could be announced over the weekend, quite possibly with Japan. However, gold’s trajectory remains higher given the uncertainty and deep concern that continues to worry asset markets,” said Tai Wong, an independent metals trader.
Trump touted “big progress” in tariff talks with Japan on Wednesday, in one of the first rounds of face-to-face negotiations since his barrage of duties on global imports roiled markets and stoked recession fears. [.N]
The dollar index recovered, but was still heading for a weekly fall. A weaker greenback makes gold less expensive for holders of other currencies. [USD/]
“We remain bullish towards gold. That said, near-term corrections are likely to occur as tactical players take profits or perhaps experience margin calls triggered by another round of equity liquidations,” consultancy Metals Focus said.
Elsewhere, spot silver fell 0.9% to $32.44 an ounce, platinum was steady at $967.08 and palladium dipped 1.5% to $956.92.
(Reporting by Brijesh Patel and Ishaan Arora in Bengaluru; Editing by Sahal Muhammed)
