Gold News: Traders Book Profits After $3,057 Peak as Dollar Strength Caps Gains

Gold Pulls Back After Record Highs as Dollar Strengthens and Traders Book Profits

Gold prices edged lower on Friday, retracing from Thursday’s record high of $3,057.59 per ounce, as a firmer U.S. dollar prompted profit-taking. Despite the pullback, bullion remains on track for a third consecutive weekly gain, up 1.6% so far this week.

At 10:18 GMT, XAU/USD is trading $3032.82, down $11.84 or -0.39%.

Dollar Strength Caps Upside After Gold Hits New Peak

The U.S. dollar index (DXY) rose 0.2% on Friday, weighing on dollar-denominated gold. Stronger greenback conditions made bullion more expensive for foreign investors, adding pressure to gold’s recent parabolic rally. Still, the broader uptrend remains intact after gold surged to fresh all-time highs this week, fueled by geopolitical tensions, inflation concerns, and safe-haven demand. Gold has now posted 16 record highs recently, including four above the $3,000 level.

Profit-Taking and Technical Levels in Focus

Spot gold is undergoing a healthy correction following its recent spike. The minor support pivot sits at $2,968.92, the midpoint between $2,880.25 and $3,057.59. A drop through this pivot may open the door toward the $2,880.25 support zone. A break below this level could expose the 50-day moving average at $2,867.86—considered a major technical level that has underpinned the market since early January. However, given the prevailing bullish sentiment, dips into this region are likely to attract fresh buying interest.

Rate Cut Expectations and Safe-Haven Demand Provide Underlying Support

Investor expectations of rate cuts by the Federal Reserve continue to support the long-term bullish narrative. The Fed held rates steady this week, with projections indicating two 25 basis point cuts by year-end. Additionally, concerns over the upcoming April 2 deadline for new U.S. tariff measures and continued global economic uncertainty are keeping safe-haven flows into gold alive.

While physical demand from India and China remains weak, Exchange Traded Product (ETP) inflows are offsetting that shortfall, providing a steady source of institutional buying.

Gold Prices Forecast: Bullish Trend Intact Despite Short-Term Pullback

Gold’s uptrend remains structurally sound. The retreat from $3,057.59 reflects normal profit-taking rather than a fundamental shift in sentiment. As long as the market holds above the $2,867–$2,880 support zone, bulls are likely to remain in control. The long-term outlook continues to favor higher gold prices, especially with safe-haven demand elevated and monetary policy expectations tilting dovish.

More Information in our Economic Calendar.