Gold falls after record on firm dollar, Trump notes on China

Oct 17 (Reuters) – Gold prices fell more than 2% on Friday after hitting a record high above $4,300 an ounce, pressured by a strengthening dollar and U.S. President Donald Trump’s comment that a “full-scale” tariff on China would be unsustainable.

Spot gold was down 2.6% at $4,211.48 an ounce as of 1:38 p.m. ET (1738 GMT), after hitting an all-time high of $4,378.69 earlier in the session. The metal rose above $4,300 an ounce for the first time on Thursday and is expected to see a weekly gain of around 4.8%.

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U.S. gold futures for December delivery fell 2.1% to $4,213.30.

Earlier in the session, gold was temporarily on track for its biggest weekly gain since September 2008, when the collapse of Lehman Brothers fueled the global financial crisis.

“I think Trump’s more conciliatory tone since the initial announcement of 100% tariffs has dampened the valuable trade a bit,” said Tai Wong, an independent metals trader.

Gold, a traditional hedge against uncertainty, has surged more than 64% this year, driven by geopolitical tensions, central bank buying, a move away from the dollar and strong inflows into gold exchange-traded funds. Bets on lower U.S. interest rates also supported the non-yielding asset.

“We expect gold to average $4,488 in 2026 and anticipate further upside risk from broader structural factors supporting the market,” said Suki Cooper, global head of commodities research at Standard Chartered Bank.

Markets are pricing in a 25 basis point cut at the October Federal Reserve meeting and another in December.

Meanwhile, demand for physical gold in Asia remained firm, even as prices hit new records, with Indian premiums hitting a decade high ahead of the festivals.

Spot silver fell 5.6% to $51.20 an ounce, after hitting a record high of $54.47, tracking gold’s rally. The metal is expected to see a weekly gain of 2%.

Platinum fell 6.1% to $1,607.85 and palladium lost 7.9% to $1,485.50.

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