Gold retreats from record highs after clarification of US tariff policy

Gold prices fell 0.5% on Friday as investors reassessed their risk appetite following the clarification of US President Donald Trump’s tariff policy. While the duties fueled concerns over an economic slowdown, they also helped reduce market uncertainty.

Despite the correction, gold is on track for a fifth straight weekly gain, buoyed by its status as a safe-haven asset. The metal notched record highs three times this week, peaking at $3,167.59, before retreating sharply on Thursday with a more than 2% drop amid a broad market sell-off.

The new US measures impose a 10% baseline tariff on all imports, with additional duties targeting major trading partners. In response, affected countries are threatening countermeasures, raising concerns about a potential global trade tensions and possible price increases in the world's largest consumer market.

The Federal Reserve (Fed) is closely monitoring the situation, as aggressive tariffs could substantially alter economic outlooks. Markets are awaiting the release of the US non-farm payroll data, which may influence the Fed's upcoming rate decisions, according to Reuters.