Gold eases after record high on knock-on effect of wider selloff

(Reuters) - Gold prices trimmed losses on Thursday after falling over 2% from an all-time high, as a wider market selloff triggered by U.S. President Donald Trump's import tariffs infected bullion traders.

Spot gold fell 0.8% to $3,108.55 as of 11:27 a.m. EDT (1527 GMT) after earlier scaling a record high $3,167.57.

U.S. gold futures fell 1.1% to $3,132.40.

Traders attributed the dip to some profit-taking and margin calls in other asset classes likely prompting investors selling some of their gold holdings to cover losses.

"As the market sold-off on the deleveraging pressures, the market was looking for buying opportunities on the dip," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

"People were selling profitable positions to cover those margins but I think in the long run they'll continue to look for safe-havens and gold is certainly that."

Trump's tariffs drove a sharp slide in financial markets because of concerns they could dampen economic growth. [MKTS/GLOB]

However, gold's overall trajectory appeared intact, with the safe haven having surged over $500 so far this year. [GOL/ETF]

David Meger, director of metals trading at High Ridge Futures, termed gold's moves "a pullback or retracement within the sideways to higher trend".

Central banks are expected to help sustain gold's rally this year with buying aimed at further diversifying reserves away from the dollar due to risks stemming from Trump's policies.

But while the rally's momentum may push prices higher in the first half, a mix of physical and financial market factors could pressure gold by end-2025, HSBC said in a note, forecasting prices to average $3,015.

Silver slipped 5.9% to $32.01, its lowest since March 4. While it usually follows gold, silver is more exposed to wider market fluctuations considering its industrial applications.

It is being pressured by demand concerns given the global selloff, said Phillip Streible, chief market strategist at Blue Line Futures.

Platinum fell 3.1% to $952.80, and palladium lost 3.5% to $935.61.

(Reporting by Anmol Choubey and Brijesh Patel in Bengaluru; Graphics by Vineet Sachdev; editing by Arpan Varghese, Barbara Lewis and Krishna Chandra Eluri)