Gold prices fell in Asian trade on Thursday, pulling back further from record highs on pressure from a stronger dollar, as U.S. President Donald Trump kept up his threats of increased trade tariffs.

The yellow metal was hit with a wave of profit-taking from record highs this week, even as the prospect of higher trade tariffs and a cooling U.S. economy kept safe haven demand in play. Gold prices struggled to cross the $3,000 an ounce level.

Reports that a U.S.-brokered peace deal between Russia and Ukraine was close undermined some safe haven demand for gold.

Broader metal prices were also pressured by strength in the dollar, which was now set for mild weekly gains as it recovered from a slump to 2-½ month lows.

Spot gold fell 0.9% to $2,890.73/oz, while gold futures expiring in April fell 0.9% to $2,903.39/oz by 00:59 ET (05:59 GMT).

Gold set for weekly losses despite scaling record high

Gold prices were set to lose between 1.4% and 2% this week, as they were hit with profit-taking after reaching record highs near the beginning of the week. Spot gold reached a peak of $2,956.37 an ounce.

The yellow metal was buoyed chiefly by increased safe haven demand, as Trump threatened to impose more trade tariffs on key commodities and U.S. trading partners. Trump also outlined a slew of measures against China, which could spark a renewed trade war between the world's biggest economies.

Trump on Wednesday said 25% tariffs against Europe were coming soon, but said that 25% duties against Canada and Mexico will likely be postponed to early April from their initial deadline of next week.

Source: Investing.com