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Gold prices reached fresh highs this week, but have since fallen back, as investors weigh the latest news around trade tariffs.
The precious metal surged past $2,900 (£2,298) per ounce earlier this week, with spot gold reaching $2,942 on Tuesday.
US president Donald Trump's signing of an executive order on Monday to impose 25% tariffs on US steel and aluminium imports pushed gold prices higher.
On Thursday, Trump announced plans for reciprocal tariffs with trading partners but delayed their implementation as his administration launches negotiations on a one-by-one basis with nations that could be impacted.
Read more: Best gold ETFs and how to invest in mining companies
Investors have been flocking to gold as it is considered a safe-haven asset in time of uncertainty. The precious metal is also often considered to act as a hedge against inflation, with concerns that tariffs could stoke price pressures. Gold is typically traded in dollars, so its price tends to rise as the purchasing power of the dollar weakens when inflation rises.
Gold prices continued to climb in early European trading on Friday morning, as investors digested these latest developments.
However, prices dropped sharply shortly after the start of the US trading session, with spot gold falling 0.9% to $2,902.40 per ounce, while gold futures (GC=F) dropped 1% to $2,911.70.
Earlier this week, we asked Yahoo Finance UK readers whether they thought gold prices could hit $3,500 per ounce this year. Three-fifths (60%) of readers believed it could reach this level, while 27% disagreed and 13% were undecided on the matter.
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