Gold dips: Prices drop after record $4,300 peak as Trump says China tariffs 'not sustainable'; Silver also retreats

Gold prices slipped on Friday after hitting above $4,300 an ounce, pressured by a stronger dollar and US President Donald Trump’s comments that his threatened high tariffs on China would not be "sustainable."

"It's not sustainable. But that's what the number is, it’s probably not, you know, it could stand, but they forced me to do that," Trump told Fox Business, when asked if the levies could remain without significantly affecting the economy.


Spot gold dropped 2.2% to $4,228.89 per ounce at 10.21 am ET (1421 GMT), after earlier reaching an all-time high of $4,378.69. The metal first crossed the $4,300 mark on Thursday and is still set for a weekly gain of 5.2%.

Spot silver fell 4.1% to $51.99 per ounce, after touching a record $54.47, tracking gold's movements, and is poised for a 7.4% weekly gain. US gold futures for December delivery were down 1.5% at $4,239.30.

The dollar index rose 0.2%, making dollar-denominated bullion more expensive for international buyers. Earlier in the session, gold had been on track for its biggest gain since September 2008, when the Lehman Brothers collapse fueled the global financial crisis.

"I think Trump's more conciliatory tone since the initial announcement of 100% tariffs has taken a little heat out of the precious trade," Tai Wong, an independent metals trader, told Reuters. Trump also confirmed a meeting with Chinese President Xi Jinping, easing some market jitters over the trade tensions.

Gold, traditionally a hedge against uncertainty, has surged more than 62% this year due to geopolitical tensions, central bank buying, a shift away from the dollar, and strong inflows into gold ETFs. Expectations of US interest rate cuts have further supported the non-yielding asset.

"We're forecasting gold to average $4,488 in 2026, and see further upside risk from broader structural factors supporting the market," Suki Cooper, global head, commodities research at Standard Chartered Bank told Reuters.

Markets are currently pricing in a 25-basis-point cut at the Federal Reserve's October meeting and another in December. HSBC raised its 2025 average gold price forecast by $100 to $3,455 per ounce and projects gold could reach $5,000 an ounce in 2026.