Gold pulled back from a record high of $3,357 an ounce on Thursday as investors took profits after a recent rally. Increased demand for the bullion was driven by escalating global trade uncertainties and new US restrictions on microchip shipments to China.
Washington and Beijing are now on the verge of commercial disputes as American President Donald Trump has launched an investigation into imports of strategic minerals, while inspections of pharmaceutical and chip deliveries are still ongoing. China has promptly responded to the US by delaying Boeing aircraft shipments.
Federal Reserve Chairman Jerome Powell warned on Wednesday that trade disputes could delay monetary policy shifts and result in higher interest rates.
In this context, gold saw a significant surge of 3.5% on Wednesday, marking its largest one-day gain since March 2023. The ANZ analysts predict a short-term correction of the metal to $3,050 an ounce following such rapid growth, as noted by Reuters.