Lagos — Gold prices traded lower after hitting another record high but were still on track for an 8th weekly gain. Ongoing uncertainty over trade policy, with US President Donald Trump recently threatening to impose new tariffs, sparked risk-off sentiment and prompted investors to seek safe-haven assets such as gold.
However, the precious metal has come under some selling pressure as investors assess a softer stance from Trump. Despite numerous tariff threats, the decision to impose only limited measures until now may ease risk aversion and weigh on gold prices.
Meanwhile, economic data points to a mixed outlook. While the latest FOMC minutes and Chair Jerome Powell’s remarks pointed to a hawkish tone, yesterday’s unexpected rise in initial jobless claims could suggest a cooling labor market. If further weakness emerges, expectations of rate cuts could boost gold’s appeal.
On the geopolitical front, the ongoing diplomatic efforts to resolve the conflict between Russia and Ukraine have injected optimism among investors. A breakthrough could fuel risk appetite and pressure gold, while setbacks may reinforce its safe-haven status.
*Fadi Al Kurdi founder CEO FFA Kings
