Gold’s record-breaking momentum temporarily slowed on Thursday, trading at around $3,325 an ounce following Wednesday’s biggest one-day gain in two years. The pause came as positive signals emerged from initial US-Japan trade negotiations, with President Trump describing the talks as “big progress.” Despite this brief interruption, gold has surged almost 27% this year—matching its 2024 performance—as investors seek security amid escalating trade tensions.
The rally has been fueled by dollar weakness and Federal Reserve Chief Jerome Powell’s cautious approach to tariffs, disappointing those hoping for swift central bank intervention. Nicholas Frappell of ABC Refinery attributes gold’s strength to multiple uncertainties: the scale of potential tariffs, the US administration’s strategic intentions, and how America’s trade partners might respond. While no immediate tariff suspension resulted from the US-Japan discussions, negotiators plan to meet again soon, aiming for an agreement within the 90-day grace period.