Gold prices end week

Published 27/02/2025, 07:40
Updated 28/02/2025, 23:10
© Reuters.

Investing.com-- Gold prices fell Friday, pressured by strength in dollar, as U.S. President Donald Trump and Ukraine President Volodymyr Zelenskyy clashed at the Oval office.

Spot gold fell 0.7% to $2,857.45/oz, while gold futures expiring in April fell 0.9% to $2,867.45/oz at 5:00 p.m. ET (22:00 GMT). 

Gold ends week lower, month higher as Trump, Zelenskyy clash

President Donald Trump said Ukraine President Volodymyr Zelenskyy could return to the Oval Office when he is ready for peace after the chances of a widely expected U.S.-Ukraine minerals deal was scuppered following a clash between the two presidents on Friday.

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. Still, the yellow metal ended February in the green.

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. 

Dollar rebounds from near 3-mth low 

Broader metal prices were pressured by a recovery in the dollar from near three-month lows. 

Platinum futures fell 1% to $947.80/oz, while silver futures fell 1.2% to $31.433/oz. 

Among industrial metals, copper prices were a mixed bag after Trump this week threatened to impose tariffs on imports of the red metal. 

U.S. copper futures expiring in May were set for a weekly gain, given that any import tariffs are likely to limit domestic supplies. But benchmark copper futures on the London Metal Exchange were set for an over 1% weekly loss, given that U.S. import tariffs will limit demand for overseas copper. 

On the economic front, The Fed’s preferred inflation gauge, The Personal Consumption Expenditures (PCE) Price Index, rose 0.3% in January, but consumer spending unexpectedly contracted, presenting a muddled economic picture for Federal Reserve policymakers considering the path ahead for interest rates.

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