Gold prices fell by 0.9% in the afternoon after reaching a historic maximum at the previous session, as the US dollar strengthened on the backdrop of growing fears related to global trade war due to the tariff measures imposed by US President Donald Trump. Spot gold prices decreased by 0.9% to $2,776.05 an ounce at 03:03 GMT after hitting a record level of $2,817.23 on Friday. "Markets are in a state of panic due to tariff dramas, and the rush for safe-haven assets, such as gold, may help limit immediate declines... although the strengthening of the US dollar may become a dampening factor," said Tim Uterer, the chief market analyst at KCM Trade. White House stated that it would not be excluded from tariffs. Canada and Mexico announced about their countermeasures, while China stated that it would challenge these tariffs at the World Trade Organization and will take unspecified countermeasures. "The range of $2,750 should be maintained to prevent more significant declines," Waterer reported. Gold prices on US futures contracts fell by 0.9% to $2,810.80. The US dollar index approached a three-decade maximum, making the dollar, reflected in greenbacks, more expensive for foreign buyers. "Gold is considered a safe haven during periods of economic and geopolitical turmoil," Citi pointed out. The company forecasts that the ongoing tightening of tariffs should support an increase in gold prices and likely push them toward the level of $3,000 an ounce. J.P. Morgan noted that negative pressure on equity markets may affect gold in the medium term, but tightening tariffs continue to play in favor of the metal in the long term. Speculators in gold on COMEX cut their net long position by 3,766 contracts to 230,592 in the week to January 28, according to data. The silver price fell by 1.4% to $30.87 per ounce, platinum decreased by 1.9% to $958.72, while palladium dropped by 1.7% to $991.50.
