Investing.com-- Gold prices slipped from record highs in Asian trading on Thursday as investors locked in profits at peak levels, while sentiment was also dented by hawkish comments from U.S. Federal Reserve Chair Jerome Powell.
As of 03:40 ET (07:40 GMT), Spot Gold fell 0.7% to $3,320.56 per ounce, while Gold Futures expiring in June lost 0.4% to $3,334.61 an ounce.
The yellow metal had reached a record high of $3,356.32 earlier in the day, hitting its second consecutive all-time peak.
Fed’s Powell rules out near-term rate cuts
The recent climb in gold prices has been driven largely by escalating geopolitical risks, strong central bank demand, and persistent inflation concerns.
However, Thursday’s dip suggested a pause in bullish momentum as investors reassessed their positions in light of hawkish signals from U.S. Federal Reserve Chair Jerome Powell.
Fed Chair Powell on Wednesday said that the central bank was not inclined to cut interest rates in the near future, citing the inflationary pressures and economic uncertainties introduced by the new tariffs.
Elevated interest rates push gold prices lower by increasing the opportunity cost of holding non-yielding assets like gold and strengthening the dollar, making gold less attractive to investors.
The decline also coincided with Trump kicking off formal tariff negotiations with Japan. He announced "big progress" after meeting with a Japanese trade delegation in Washington on Wednesday.
Analysts expect underlying support for gold to remain strong due to ongoing macroeconomic uncertainties.
Among other precious metals, Silver Futures dropped 1.6% to $32.470 an ounce, while Platinum Futures declined 1.1% to $969.75 an ounce.
Copper prices fall on stronger dollar; US-China tariff tensions
Copper prices fell Thursday as the greenback ticked up on the Fed’s hawkish tone.
The losses were intensified by ongoing trade tensions between the U.S. and China.
Although media reports suggested that China was ready to negotiate with the U.S., investors were still on the edge.
The world’s largest copper importer has been slapped with a total of 145% tariffs.
Benchmark Copper Futures on the London Metal Exchange fell 0.4% to $9,172.15 a ton, while Copper Futures expiring in May dropped 1.6% to $4.610 a pound.