Gold prices fell further from record highs in Asian trade on Friday, but were set for a positive week as threats of more trade tariffs from U.S. President Donald Trump boosted haven demand.
A drop in the dollar also benefited gold prices this week, as creeping worries over the health of the U.S. economy- specifically private spending- offset persistent messaging from the Federal Reserve that U.S. interest rates will remain high for longer.
Concerns over U.S. consumer spending were driven by weak retail sales data, as well as softer-than-expected guidance from retail giant Walmart (NYSE: WMT).
But this messaging did pull gold off record highs, while broader metal markets also saw some losses on Friday.
Spot gold fell 0.5% to $2,925.06 an ounce, while gold futures expiring in April fell 0.5% to $2,941.49 an ounce. Spot prices hit a peak of $2,954.89 an ounce earlier this week.
Gold heads for eighth consecutive weekly gain on tariff jitters
Spot gold was set to add about 1.6% this week- its eighth consecutive positive week.
The yellow metal has risen every week so far in 2025 amid persistent concerns over Trump’s protectionist policies and tariff agenda.
These concerns were furthered by Trump threatening 25% tariffs on automobiles, pharmaceuticals, semiconductors, and lumber this week. The President said that the tariffs could come by as soon as early April.
Trump also threatened reciprocal tariffs against major U.S. trading partners, raising concerns over a global trade war.
These concerns were a key driver of safe-haven demand for gold. The yellow metal had also risen in the run-up to Trump’s inauguration in late January, given that the U.S. President had telegraphed a bulk of his tariff actions.
Other precious metals marked a mixed performance on increased safe-haven demand. Silver prices largely tracked gains in gold and were trading up 1.2% for the week, while platinum futures were set to lose 3.2% this week.
Copper heads for weekly losses as China rally cools
Among industrial metals, copper was headed for weekly losses amid some profit-taking after a strong run-up in recent weeks.
Benchmark copper futures on the London Metal Exchange fell 0.4% to $9,522.80 a ton, while March copper futures fell 0.8% to $4.5750 a pound. Both contracts were down as much as 1.9% for the week.
The red metal benefited from improving sentiment towards China, as investors bought into optimism over the country’s artificial intelligence prospects. Copper plays a key role in electricity and data center infrastructure- both crucial to the AI industry.
Still, sentiment towards China was clouded by fears of a brewing trade war with the U.S.
