Gold Prices Retreat Amid Profit-Taking and Geopolitical Tensions

BENGALURU, India (Reuters) – Gold prices fell on March 10 as profit-taking overshadowed safe-haven demand stemming from ongoing geopolitical uncertainties. Spot gold decreased by 0.8% to $2,887.67 an ounce at 1740 GMT, following a 2% increase in the previous week. U.S. gold futures dropped 0.5% to $2,899.40.

Jim Wyckoff, a senior analyst at Kitco Metals, noted, “There is a slight pause in gold prices due to some mild profit-taking and a weaker stock market. However, we might see some safe-haven bids later.”

U.S. stock index futures retreated as investors remained apprehensive about potential repercussions from escalating tariff disputes. President Donald Trump has recently imposed new 25% tariffs on imports from Mexico and Canada, along with fresh duties on Chinese goods. However, he later exempted many imports from Mexico and some from Canada from these tariffs for a month.

Wyckoff stated, “Uncertainty regarding trade wars and global economic recessions are all bullish for gold; record high levels are possible again. Weaker-than-expected data is going to be friendly for gold.”

Market participants are also keenly anticipating the U.S. Consumer Price Index (CPI) data due on Wednesday and the Producer Price Index (PPI) print on Thursday. Traders are currently fully pricing in a U.S. rate cut for June.

Jerome Powell, the Federal Reserve Chair, commented on March 7 that it remains uncertain whether the Trump administration’s tariff strategies would be inflationary, as lower interest rates tend to enhance the appeal of non-yielding bullion.

In addition to gold, spot silver declined 1.5% to $32.03 an ounce. Marex consultant Edward Meir remarked, “Investment in silver is set for modest improvement… However, broader economic concerns, particularly related to China’s economy, could dampen investor enthusiasm.”

Recent data indicated that China’s imports unexpectedly contracted during the January-February period, while the consumer price index fell at its fastest pace in 13 months in February. In terms of other precious metals, platinum lost 0.4% to $959.35, and palladium decreased by 0.9% to $941.38.

This fluctuation in prices reflects a cautious market sentiment as investors navigate geopolitical tensions and economic indicators.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shilpi Majumdar)