Gold Price Retreats After Surging to All-Time High
Gold prices fell sharply on Friday, retreating over 2% after hitting an unprecedented high of $4,378.69 per ounce. By early afternoon, spot gold was down to $4,212.99, pressured by a stronger U.S. dollar and U.S. President Donald Trump’s softened stance on tariffs against China.
The recent spike saw gold prices after record high trading above $4,300/oz for the first time, placing the yellow metal on course for a weekly gain of 5%. However, Trump’s remarks that a “full-scale” tariff on China would be unsustainable eased investor concerns, leading to profit-taking.
Strong Dollar and Fed Outlook Shape Gold’s Trajectory
The U.S. Dollar Index rose 0.1%, making dollar-priced bullion less appealing for international buyers. Despite the dip, gold price after record high still reflects a strong uptrend, with the metal gaining over 62% in 2025 due to geopolitical tensions, central bank demand, and increasing ETF flows.
Markets are now anticipating a 25-basis-point interest rate cut from the Federal Reserve in both October and December, which could support further gold upside.
Analysts Still Bullish on Long-Term Gold Outlook
Standard Chartered forecasts gold to average $4,488 in 2026, while HSBC expects it to hit $5,000. Physical demand remains high in Asia, with Indian premiums surging ahead of festive season buying.
