Gold Pauses Record-Breaking Rally as Market Ponders Trade Talks

Gold paused its record-breaking rally amid optimism over US-Japan trade talks, after bullion earlier reached another all-time high, Bloomberg reported.

The precious metal edged lower to trade around $3,325 an ounce, after its biggest one-day gain in two years on Wednesday. That jump came on dollar weakness and as Federal Reserve Chief Jerome Powell signaled a wait-and-see approach to tariffs, pushing back on hopes the central bank would act quickly to soothe investor fears.

The precious metal has climbed almost 27% this year — matching the gain it notched in 2024 — as US President Donald Trump’s escalating trade war creates anxiety over a possible global recession. That uncertainty is benefiting gold, said Nicholas Frappell, global head of institutional market at ABC Refinery based in Sydney.

“Uncertainty about the scale and breadth of tariffs, uncertainty over the strategic plan of the US administration, and the degree to which America’s trade partners will respond,” Frappell said.

Stock futures and the dollar rose on Thursday on positive signals from initial US-Japan trade talks, as Trump hailed the negotiations as “big progress.” While the talks didn’t result in an immediate halt on tariffs, Japan’s lead negotiator said the countries will speak again soon as they aim to reach a deal within the 90-day grace period.

Gold was down 0.5% at $3,326.14 an ounce at 10:25 a.m. in London. It touched a record $3,357.78 earlier in the day, and is still on track for a weekly gain of almost 3%. The Bloomberg Dollar Spot Index rose 0.1%, after dropping 0.7% on Wednesday. Silver, platinum and palladium all fell.