Gold prices have pulled back from this week’s record highs, slipping about 2.3% from Monday’s peak to trade near $2,880 an ounce. The decline likely ends an eight-week rally — the longest stretch of gains since 2020 — as traders reassess near-term prospects for the metal.
The retreat coincided with a rise in US 10-year Treasury yields above 1% on Thursday, which reduced the relative appeal of non-yielding gold compared with interest-bearing assets. Higher real and nominal yields typically weigh on bullion, and the move in Treasuries prompted some short-term profit-taking among investors who had pushed gold to fresh highs.
Despite the correction, bullion still draws safe-haven demand amid heightened global market uncertainty. Recent tariff announcements from President Trump — including a confirmed 25% duty on certain imports from the European Union and the prospect of tariffs on Canada and Mexico if no deal is reached by a March 4 deadline — have kept geopolitical and trade risks elevated. Those uncertainties support a baseline of demand for gold as a hedge against policy-driven market shocks.
New research also suggests that proposed tariffs on Chinese imports could carry broader economic consequences for the United States than official trade statistics imply. The prospect of wider economic disruption and potential retaliatory measures increases the appeal of assets perceived as stores of value, helping to underpin gold even as prices pull back from intraday highs.
Market participants are now focused on upcoming economic data for clues to the Federal Reserve’s near-term policy path. Attention centers on Friday’s release of the Fed’s preferred inflation gauge, which could influence expectations for interest rates and real yields — key drivers for gold’s appeal. Stronger-than-expected inflation could push real rates lower and support bullion, while cooler data could lift yields and pressure prices further.
In sum, the recent dip in gold reflects a shift in yields and short-term profit-taking, but persistent geopolitical risks and inflation uncertainty continue to provide a supportive backdrop for the metal. Traders will be watching Treasury yields and incoming inflation data closely to gauge whether this pullback is a temporary correction or the start of a more sustained shift in the gold market.