Gold prices fell on Friday as investors booked profits from the previous session's record high, but were set for an eighth straight weekly gain, boosted by strong safe-haven demand amid concerns over U.S. President Donald Trump's tariff plans.

Spot gold fell 0.1% to $2,935.75 an ounce. Bullion is up about 1.7% this week after rising to a record $2,954.69 on Thursday.

U.S. gold futures fell 0.2% to $2,950.30.

"It's just a classic move of new record highs and profit-taking… (but) the fundamentals of gold remain solid," said Alex Ebkarian, chief operating officer at Allegiance Gold.

Gold prices have hit two record highs this week and are trading above $2,950 an ounce, as uncertainty over global economic growth and political instability have underlined investor appetite for bullion, which has gained 11.5% so far in 2025.

"Gold demand is currently driven primarily by Western investors and central banks. ETF investors appear to be jumping on the bandwagon," Commerzbank analysts said in a note.

Trump's new set of tariff plans announced earlier this week include duties on timber and forest products, alongside previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.

This comes after imposing an additional 10% tariff on Chinese imports and a 25% tariff on steel and aluminium.

Gold's role as a safe haven has yet to be fully realized as the shift from riskier assets to safer ones has been muted, with money still not in the mix, Ebkarian said.

Investors are also watching the US Federal Reserve's interest rate trajectory for clues, given Trump's policies are seen as inflationary. Higher inflation could force the Fed to keep interest rates high, reducing the appeal of non-yielding gold.

Spot silver fell 0.8% to $32.68 an ounce and palladium fell 0.9% to $968.74. Both metals were headed for weekly gains.

Platinum fell 0.7% to $972.19 and was set for a weekly decline. (Newsmaker23)

Source: CNBC