Gold Prices Decline Following Record High Amid Market Selloff
By Anmol Choubey, Reuters
Introduction
Gold prices drop hard on Thursday. They fall after a record high. A broad market selloff makes bullion traders worry. U.S. tariffs set by President Trump hit many assets. The taxes send ripples across markets.
Gold Market Overview
At 10:04 a.m. EDT (1404 GMT), spot gold in global markets drops 1.1% to $3,098.73. Not long ago, it hit a record high of $3,167.57. U.S. gold futures slide 1.4% to $3,121.90. Some traders sell gold to take profits and cover margin calls. They need cash to meet losses in other assets. Independent metals trader Tai Wong said, “The tariff mess pushes down the dollar. Traders sell gold when margin calls come in.”
Impact of Tariffs on Financial Markets
Trump’s new tariffs stir worry in the market. They spark fear and quick price swings. Investors shift their portfolios because of these taxes. Gold gets hurt even as it is a safe asset. Market tension is clear as prices fall.
Market Trends and Predictions
Gold shows strength despite the drop. It has risen over $500 since January 2025. David Meger, metals trading director at High Ridge Futures, calls the fall a pullback in a rising trend. Central banks plan to back gold as they move away from the dollar. Experts think gold may rise early in the year. Later pressures in the market could push prices down to an average of $3,015 by year’s end, say HSBC analysts.
Performance of Other Precious Metals
Other metals drop too. Silver sinks 5.6% to $32.12, its lowest since early March. The fall hits silver due to its industrial use. Lower demand can drive its price down. Platinum and palladium also slip, down 3% and 3.3%. Their losses add to the overall market decline.
Conclusion
Investors face a hard market with shifting economic policies and global events. Gold stays a key asset amid ongoing changes. Recent moves spark price swings. Experts watch new economic steps closely. Traders must be alert as they adjust their strategies in a changing market.
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