Gold pulls back after record high, but bullish momentum remains strong

Gold prices edged lower on Thursday as investors took profits following a new all-time high earlier in the session. Spot gold dipped 0.1% to $3,338.81 an ounce (as of 04:36 GMT), after hitting a historic $3,357.40. Despite the slight retreat, gold remains up over 3% this week.

U.S. gold futures held steady, inching up 0.1% to $3,351.

The rally comes amid rising geopolitical tensions and economic uncertainty. President Trump has launched a new probe into possible tariffs on critical mineral imports, further escalating trade frictions with major partners. This follows ongoing U.S. restrictions on chip and pharmaceutical imports from China — and Beijing’s retaliation, including a move to block additional Boeing aircraft deliveries.

"Everything is going gold’s way right now," said Nikos Tzabouras, senior market analyst at Tradu.com. “Even with slight pullbacks, the outlook remains strong as trade chaos fuels demand for safe havens.”

The dollar index is also feeling the heat, hovering near a three-year low, which has made gold more appealing to international investors. Trevor Yates from Global X noted that market volatility in stocks and bonds is prompting investors to increase their gold holdings.

Gold, a traditional hedge against inflation and uncertainty, has now surged over 27% since the beginning of the year. Analysts at ANZ maintain a bullish outlook but say a pullback toward $3,050 is possible after the recent rapid rally.