Gold prices fell more than 2% on Friday after hitting a record high above $4,300 an ounce, pressured by a firmer dollar and US President Donald Trump’s comment that a “full-scale” tariff on China would be unsustainable.
Spot gold was down 2.2% at $4,228.89 an ounce at 10:21 a.m. ET (14:21 GMT), after scaling an all-time high of $4,378.69 earlier in the session. The metal surpassed $4,300 per ounce for the first time on Thursday, and is on track for a 5.2% weekly gain.
US gold futures for December delivery fell 1.5% to $4,239.30.
The dollar index rose 0.2%, making dollar-priced bullion more expensive for foreign buyers.
Earlier in the session, gold had temporarily been on track for its biggest gain since September 2008, when the collapse of Lehman Brothers fueled the global financial crisis.
“I think Trump’s more conciliatory tone since the initial 100% tariff announcement has taken some of the heat off precious trading,” said Tai Wong, an independent metals trader.
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Gold is up more than 62% this year
Trump confirmed a meeting with his Chinese counterpart on Friday, easing some market jitters over the escalation of the trade conflict between the two countries. Wall Street’s main indexes closed mixed on Friday after the comments, while concerns about regional banks’ credit problems kept investors on edge.
Gold, a traditional hedge against uncertainty, has risen more than 62% this year, driven by geopolitical tensions, central bank buying, the dollar shift and strong inflows into gold exchange-traded funds. Bets on US interest rate cuts have also supported the non-yielding asset.
“We forecast gold to average $4,488 in 2026 and see greater upside risk from broader structural factors supporting the market,” said Suki Cooper, global head of commodities research at Standard Chartered Bank.
Markets are pricing in a 25 basis point cut at the Federal Reserve’s October meeting and another in December.
HSBC on Friday raised its 2025 average gold price forecast by $100 to $3,455 an ounce, and projected it would reach $5,000 an ounce in 2026.
Spot silver fell 4.1% to $51.99 an ounce, after hitting an all-time high of $54.47, tracking gold’s rally. The metal is set for a 7.4% weekly gain.
Platinum fell 6.1% to $1,607.65 and palladium lost 7% to $1,500.
With information from Reuters.
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