Gold Prices Retract After Record High: What Investors and Entrepreneurs Need to Know for Market Strategy
Gold prices dropped by more than 2% on Friday, following a record peak above $4,300 per ounce. This decline was influenced by a stronger U.S. dollar and comments from U.S. President Donald Trump, who stated that a "full-scale" tariff on China would be unsustainable.
At 1:38 p.m. ET (1738 GMT), spot gold was trading down 2.6% at $4,211.48 per ounce, after reaching an all-time high of $4,378.69 earlier in the session. The price surpassed the $4,300 per ounce mark for the first time on Thursday and is on track for a weekly increase of approximately 4.8%.
HSBC has raised its average gold price forecast for 2025 by $100, now projecting $3,455 per ounce. The bank cited ongoing geopolitical tensions, economic uncertainties, and a weakening U.S. dollar as key factors. Furthermore, HSBC forecasted that prices could climb to $5,000 per ounce in 2026.
In a note, HSBC stated, "Gold’s rally is likely to continue through the first half of 2026, driven by geopolitical risks, economic policy uncertainty, and rising public debt."
Special Analysis by Omanet | Navigate Oman’s Market
The recent gold price volatility, marked by a record high and subsequent correction, signals both risks and opportunities for Oman’s market. For businesses, the rally reflects ongoing geopolitical uncertainties and economic policy challenges, suggesting a continued demand for gold as a safe haven asset. Smart investors and entrepreneurs should consider increasing exposure to gold-related assets, anticipating sustained price strength into 2026, while also preparing for currency fluctuations tied to the stronger dollar dynamics.
