Gold prices pulled back further from all-time highs of $3,500 on Wednesday dropping around 1.2% by late-morning as geopolitical tensions eased slightly.
Spot gold dipped 0.2%, while U.S. futures slid 0.5%, pressured by a modest rebound in the dollar index.
“The recent de-escalation in U.S. trade friction—highlighted by Trump’s tariff relief orders and China’s rollback of its 125% ethane duty—has dialed down the geopolitical risk premium that had been fueling bullion’s historic rally,” said Mohamed Radwan, lead analyst at XMarabia.
The dip represents short-term profit taking by investors, as opposed to a longer-term shift, Marabia added.
He said: “The metal’s role as a hedge against policy uncertainty, currency debasement, and financial stress remains intact—especially with global central banks still cautious and rate paths unclear. Until the Fed firmly signals a pivot or economic momentum reaccelerates, gold retains its strategic appeal.”
A firm dollar also contributed to the dip. A strong dollar makes gold more expensive for buyers outside the US.
