WASHINGTON (dpa-AFX) - Gold prices traded slightly lower on Thursday after hitting a record high of $2883 per ounce on Wednesday, helped by concerns about U.S. President Donald Trump's tariff threats, geopolitical risks and robust central bank purchases.
Spot gold dipped 0.3 percent to $2,858.95 per ounce in European trade while U.S. gold futures were down half a percent at $2,878.84.
Citi Research has upgraded its three-month price target for gold to $3,000 per ounce from $2,800 and hiked its 2025 average forecast to $2,900 per ounce from $2,800.
Bullion is seeing some profit taking today as the U.S. dollar bounced from recent lows ahead of the Bank of England's interest-rate decision later in the day.
Nevertheless, the dollar index is still considerably off the three-week high seen at the start of the week as Trump signed an executive order imposing 25 percent tariffs on all goods from Canada and Mexico.
Later, these tariffs were delayed for a month. Trump also introduced tariffs on goods from China, which has hit back by announcing similar charges on some U.S. products.
Risk aversion ebbed somewhat and global stocks were on the upswing today amid easing of inflation and trade war concerns.
The U.S. Postal Service (USPS) has resumed accepting parcels from mainland China and Hong Kong, reversing a brief suspension triggered by new trade measures introduced by U.S. President Donald Trump.
In another development, U.S. Treasury Secretary Scott Bessent said that President Donald Trump is not directly calling for the Federal Reserve to lower rates.
If energy prices are brought down, the tax-cut extensions the administration is working toward are enacted, and the economy is deregulated, 'then rates will take care of themselves, and the dollar will take care of itself,' Bessent said.
The U.S. economic calendar remains light today, with a report on weekly jobless claims along with preliminary readings on labor productivity and costs in the fourth quarter of 2024 likely to garner some attention.
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