Gold prices retreated on Friday, October 17, after briefly surging past $4,300 per ounce, as easing trade tensions and a stronger US dollar reduced safe-haven demand.
The spot price of gold fell 2.6% to $4,211.48 per ounce, after reaching an intraday high of $4,378.69, while December gold futures dropped 2.1% to $4,213.30 per ounce.
Earlier in the week, gold had gained 4.8%, breaking the $4,300 mark for the first time on Thursday. At one point, the metal was poised for its largest weekly gain since the 2008 Lehman Brothers collapse, which triggered the global financial crisis.
“I think Trump has softened his tone since the initial announcement of the 100% tariffs, and that’s taken some of the heat out of precious metals trading,” said Tai Wong, an independent metals trader.
US President Donald Trump confirmed on Friday that he would meet with Chinese President Xi Jinping, alleviating some investor concerns over escalating US-China trade tensions.
Market expectations currently point to a 25-basis-point interest rate cut by the Federal Reserve at its October meeting, with another potential cut in December.
Meanwhile, HSBC revised its gold price outlook, raising the average forecast for 2025 to $3,455 per ounce and projecting prices could reach $5,000 per ounce in 2026.
Despite record-high prices, physical gold demand in Asia remained strong, with premiums in India hitting a decade high ahead of the festive season.