Gold prices decreased slightly during trading on Thursday, pulling back from their highest levels since October 31, nearly three months ago, amid anticipation from investors for a speech by U.S. President Donald Trump later in the day.
In terms of trading, spot gold prices fell by 0.41% to record $2,744.68 per ounce, while February futures for bullion dropped by 0.75% to reach $2,750.21 per ounce.
The decline in gold prices today comes as investors await Trump's speech scheduled to take place later in the day at the World Economic Forum, where they are looking for any potential signals or new statements regarding tariffs that Trump has pledged to impose on U.S. imports following his take on the White House.
European Commissioner for Trade and Economic Security Maroš Šefčovič said on Thursday that the European Union may consider allowing the United Kingdom to join the Customs Agreement for the wider Europe and Mediterranean region, in a move to counter the potential impact of tariffs that Trump is set to impose on imports from Europe to the United States.
At the same time, yields on the benchmark 10-year U.S. Treasury bonds rose by 0.52% to record 4.623%, while yields on one-year Treasury bonds—which are usually linked to market pricing for changes in federal interest rates—fell by 0.06% to record 4.295%.
This comes as the U.S. Federal Reserve is set to hold a monetary policy meeting next week, and it is widely expected that the Federal Open Market Committee will keep interest rates unchanged at this meeting.