Gold pulled back in trading today, slipping 0.7% to $3,358.76 per ounce as the U.S. dollar strengthened ahead of key employment data due Friday.
The decline follows Monday’s sharp rally, which was the largest single-day gain for gold in four weeks. Despite today’s retreat, gold remains one of this year’s top performers, up more than 25% as investors continue to turn to safe-haven assets amid rising trade tensions between the U.S., China and Europe.
Goldman Sachs has recommended gold as a long-term inflation hedge, noting concerns about U.S. institutional credibility and arguing that gold can provide portfolio protection comparable to, or in some cases preferable to, oil. Other precious metals—including silver, platinum and palladium—moved lower alongside gold.