Gold prices slid 1% on Friday, April 4, 2025, as investors processed the implications of U.S. President Donald Trump’s latest tariffs and shifted their focus towards the upcoming U.S. non-farm payrolls report. This report, set to be released at 8:30 a.m. EDT, is expected to provide insight into the Federal Reserve’s monetary policy moving forward.
Spot gold was down 0.9% at $3,086.32 per ounce but remained on track for a fifth consecutive weekly gain. Meanwhile, U.S. gold futures edged 0.4% lower to $3,107.70. The previous session saw gold reach a record high of $3,167.57 before experiencing a significant drop of over 2%, a reaction to a broader market selloff triggered by Trump’s announcement of a 10% baseline tariff on all imports to the U.S. and increased duties on key trading partners.
Gold is traditionally seen as a hedge against geopolitical uncertainty and inflation; however, rising interest rates can diminish its appeal since gold yields no interest. This context has led to a decline in other precious metals as well. Spot silver fell 1.6% to $31.38 per ounce, marking its worst week since December 2023. Platinum and palladium also experienced losses, with platinum down 1.4% to $942.90 and palladium slipping 0.2% to $926.69.
The decline in gold prices on Friday extended the downward trend seen earlier in the week, as anxiety over the potential impact of a global trade war intensified following Trump’s aggressive tariff agenda. On this day, bullion slipped as much as 2.4%, compounding the decline from the previous session, which had initially surged to a fresh all-time high of $3,167.84 per ounce.
Market analysts suggest that despite the current selloff, there are reasons to believe that buyers will return to the gold market. The ongoing fear and uncertainty surrounding the global economy and tariff wars are likely to draw investors back to gold as a safe haven. In fact, it is anticipated that central banks may begin cutting rates to mitigate the effects of the trade wars, which could further bolster gold’s position in the market.
Looking ahead, analysts believe that gold has a significant support level near the $3,000 mark. This level is seen as psychologically important and may attract traders looking for entry points. A bullish flag pattern was previously formed, with projections suggesting a measured move towards the $3,300 level. If this barrier is breached, it could open the door for a rally towards $3,500, although analysts caution that such movements may not occur overnight and could face significant resistance.
Chris, a proprietary trader with over 20 years of experience, noted, “Even when we do see a breakout, there will be substantial barriers to overcome. However, it’s likely only a matter of time before we make a serious attempt to break out to the upside.” His insights underscore the complex dynamics at play in the gold market.
As the day progresses, traders will be closely monitoring economic indicators and geopolitical developments that could influence gold prices further. The current volatility serves as a reminder of the intricate relationship between market sentiment, government policy, and precious metals.
In summary, the gold market is navigating a challenging landscape shaped by tariff announcements and economic forecasts. While prices have dipped in response to recent events, the potential for recovery remains as investors continue to view gold as a reliable safe haven amidst uncertainty.
