GOLD prices eased on Friday (Feb 21) as investors booked profits from the previous session’s record high, but were set for an eighth straight weekly gain, driven by strong safe-haven demand amid concerns over US President Donald Trump’s tariff plans.
Spot gold shed 0.1 per cent to US$2,939.63 an ounce as of 2.24 am eastern time (1924 GMT). Bullion has gained around 1.9 per cent this week after rising to a record US$2,954.69 on Thursday. US gold futures settled 0.1 per cent lower at US$2,953.20.
“It’s just a classical movement of new all-time highs and profit-taking… (but) the fundamentals for gold remain solid,” said Alex Ebkarian, chief operating officer at Allegiance Gold.
Prices have shattered two record highs this week to trade above US$2,950 an ounce, as uncertainties surrounding global economic growth and political instability have underscored investor appetite for bullion, which has risen 11.5 per cent so far in 2025.
“Demand for gold is currently being driven primarily by western investors and central banks. (Exchange-traded funds) investors appear to be jumping on the bandwagon,” Commerzbank analysts said in a note.
Trump’s fresh bout of tariff plans announced earlier this week includes duties on lumber and forest products, on top of previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals. This comes after the imposition of an additional 10 per cent tariff on Chinese imports and a 25 per cent tariff on steel and aluminium.
Gold’s safe-haven role is not fully realised yet as the shift from riskier assets to safer ones is not significant, with money still on the sidelines, Ebkarian said.
Investors are also monitoring the US Federal Reserve’s interest rate trajectory for clues, given that Trump’s policies are viewed as inflationary. Higher inflation could compel the Fed to maintain high interest rates, thus reducing the allure of non-yielding gold.
Spot silver was down 0.9 per cent at US$32.64 an ounce and palladium dipped 0.7 per cent to US$970.45. Both metals were headed for weekly gains. Platinum shed 1.1 per cent to US$967.40 and eyed a weekly decline. REUTERS
