Gold prices dipped slightly on Friday as investors locked in profits following the previous session’s all-time high. Despite this pullback, the precious metal remains on track for its eighth consecutive weekly gain, fueled by robust safe-haven demand amid ongoing concerns over U.S. tariff policies.
Gold Prices Dip but Maintain Strong Weekly Performance
As of 02:24 a.m. ET (1924 GMT), spot gold slipped 0.1% to $2,939.63 per ounce. However, it has climbed 1.9% this week, reaching a record high of $2,954.69 on Thursday.
“Profit-taking after new record highs is a typical movement, but gold’s fundamentals remain strong,” said Alex Ebkarian, Chief Operating Officer at Allegiance Gold.
Key Drivers Behind Gold’s Bullish Momentum
1. Safe-Haven Demand Amid Economic Uncertainty
Gold’s surge has been primarily driven by economic and political instability, with investors seeking safety in bullion. The metal has soared 11.5% in 2025, reflecting its role as a hedge against market turbulence.
2. Strong Institutional and Central Bank Buying
Western investors and central banks have significantly contributed to gold’s rally. ETF investors are actively increasing their holdings, according to a Commerzbank report.
3. U.S. Tariff Policies Fuel Inflation Concerns
Fresh tariff announcements from former U.S. President Donald Trump have added to market uncertainty. His recent plans include duties on lumber, forest products, cars, semiconductors, and pharmaceuticals, in addition to existing tariffs on Chinese imports, steel, and aluminum.
4. Federal Reserve’s Interest Rate Outlook
Investors are closely watching the U.S. Federal Reserve’s monetary policy, as higher tariffs could lead to increased inflationary pressures. If inflation continues to rise, the Fed may maintain or even tighten its interest rate policies, further impacting gold’s trajectory.
Outlook: Will Gold Continue Its Upward Trend?
While profit-taking has momentarily slowed gold’s upward momentum, market analysts suggest the safe-haven appeal of the metal remains intact. With ongoing geopolitical risks, inflation fears, and central bank accumulation, gold prices could see further gains in the coming weeks.
For investors looking to hedge against economic uncertainty, gold remains a strong long-term investment option. Stay tuned for more updates on gold price trends and market forecasts.
