NEW YORK: Gold prices dipped on Thursday after hitting a near three-month high in the previous session, while market participants awaited further clarity on policies from US President Donald Trump’s administration.
Spot gold was down 0.4% at $2,744.49 per ounce by 1246 GMT, having hit its highest since Oct. 31 on Wednesday. US gold futures shed 0.7% to $2,751.20. “Spot prices are flirting with technically overbought conditions, which suggests that a slight technical pullback is due,” said Exinity Group chief market analyst Han Tan.
Gold’s relative strength index is at 64, suggesting that the price is approaching the “overbought” territory that starts at 70. “Gold is set to take further strides towards the psychological $3,000 mark if President Trump’s policies in turn boost demand for inflation hedges and safe havens,” Tan said.
Trump has proposed imposing tariffs of about 25% on Canada and Mexico and 10% on China, starting Feb. 1. He has also mentioned potential tariffs on European imports, but did not provide specific details. Gold is considered a safe investment amid economic and geopolitical turmoil, but higher interest rates reduce bullion’s appeal as it yields no interest.
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