Maria Agustina Patti

Gold prices pulled back on Thursday after setting another all-time high earlier in the session, as investors locked in profits ahead of a long holiday weekend. Additionally, Powell warned that the Fed may hold off on interest rate adjustments until the economic impact of the new trade policies becomes clearer. This cautious tone could weigh on gold to a certain extent.

However, trade tensions remain elevated following a series of mixed signals from the White House. While the US initially offered exemptions on tech products and suggested flexibility on auto tariffs, this was soon followed by a more assertive tone, including probes into potential tariffs on minerals.

Although markets had hoped for a potential reset in US-China trade relations, Beijing made clear that any renewed negotiations would depend on greater consistency in US messaging and respect for its political red lines. This uncertainty is likely to keep safe-haven demand elevated.

Looking ahead, investors will continue to monitor incoming US economic data for signals on the strength of the economy and implications for monetary policy, in addition to developments in US trade policy.

Patti is Financial Markets Strategist Consultant to Exness