Gold prices have fallen for the first weekly loss of 2025, trading near $2,860 an ounce after hitting a record high of $2,956.19 earlier this week.
President Trump’s announcement of impending tariffs on Canada, Mexico, and additional levies on China has strengthened the US dollar, making gold less attractive to foreign investors.
While concerns about inflation, trade tensions, and geopolitical uncertainty continue to support gold’s status as a safe haven, these factors have been overshadowed this week by profit-taking and dollar strength. Investors are now looking to the Fed’s preferred inflation gauge—the core PCE price index—for clues about future monetary policy, as lower interest rates typically benefit non-interest bearing assets like gold.