Gold prices pared losses on Thursday after falling more than 2% from an all-time high, as a broad market sell-off triggered by U.S. President Donald Trump's tariffs on imports caught up with bullion traders.

Spot gold fell 0.85% to $3,106.99 by 1:47 a.m. EDT (1747 GMT) after hitting a record high of $3,167.57 earlier in the session.

U.S. gold futures settled 1.4% lower at $3,121.70

Traders attributed the decline to some profit-taking and margin calls in other asset classes that likely prompted investors to sell some of their gold holdings to cover losses.

"When the market sells off on deleveraging pressures, it looks for buying opportunities on dips," said Peter Grant, vice president and senior metals strategist at Zaner Metals. "People are selling profitable positions to cover those margins, but I think in the longer term they will continue to look for safe havens and gold is certainly one of them." Trump's tariffs have led to a sharp decline in financial markets on concerns that the tariffs could hurt economic growth. However, gold's overall trajectory appears intact, with the safe haven having surged more than $500 so far this year.

David Meger, director of metals trading at High Ridge Futures, called gold's move "a pullback or retracement in a sideways trend higher." Central banks are expected to help sustain gold's rally this year with purchases aimed at further diversifying reserves away from the dollar as risks emanate from Trump's policies. But while the rally's momentum could push prices higher in the first half, a mix of physical and financial market factors could weigh on gold by the end of 2025, HSBC said in a note, forecasting an average price of $3,015. Silver slumped 5.9% to $32.01, its lowest since March 4. While it typically tracks gold, silver is more vulnerable to broader market fluctuations given its industrial applications.

Silver prices were pressured by demand concerns amid the global selloff, said Phillip Streible, chief market strategist at Blue Line Futures.

Platinum fell 3.2% to $951.87, and palladium dropped 4.2% to $929.43. (Newsmaker23)

Source: Reuters