NEW YORK: Gold prices eased on Thursday after a sharp rise in the previous session as investors booked profits ahead of a long weekend, although softer dollar and escalating US-China trade tensions kept bullion above the $3,300 per ounce level.
Spot gold slipped 0.5% to $3,326.51 an ounce as of 08:58 a.m. ET (1258 GMT), after touching a record high of $3,357.40 earlier in the session. Bullion has gained nearly 3% this week.
US gold futures were down 0.2% at $3,339.90. “Gold may have a short-term pullback given its spectacular surge this week and ahead of a rare long weekend in the markets,” said Tai Wong, an independent metals trader.
“There is some risk that a trade deal could be announced over the weekend, quite possibly with Japan. However, gold’s trajectory remains higher given the uncertainty and deep concern that continues to worry asset markets.”
Gold prices surged 3.6% on Wednesday, driven by US President Donald Trump’s order to open a probe into potential tariffs on all critical mineral imports, in addition to reviews into pharmaceutical and chip imports.
Meanwhile, Trump touted “big progress” in tariff talks with Japan on Wednesday, in one of the first rounds of face-to-face negotiations since his barrage of duties on global imports roiled markets and stoked recession fears. The dollar index recovered on Thursday, but was still heading for a weekly fall.
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