By David Brough
Gold prices fell on profit taking in mid-February, trading below the latest in a series of all-time peaks touched in 2025, and were buoyed by fears over trade wars linked to U.S. tariff policies.
Bullion prices dropped in the run-up to the February 15-16 weekend, having touched a record high of USD $2,942.70 per ounce on February 11, 2025.
On February 14, gold was down 1.67 percent to USD $2,882.09 per ounce on profit taking.
Phillip Streible, Chief Market Strategist at Blue Line Futures, was quoted by Kitco News as saying that easing geopolitical tensions were eroding gold’s safe-haven appeal.
First, a phone call between the U.S. and Russian leaders in February raised the prospect of a possible peace deal to end the war in Ukraine.
And second, while President Trump continues to threaten trade tariffs, he has delayed any major action until a country-by-country review has taken place, which is expected to be done by April.
Some traders saw further potential upside for gold, with USD $3,000 per ounce in sight, if uncertainties over the impact of tariffs intensified, and if the dollar weakened further. The greenback softened on the latest relief on U.S. tariff fears.
Gold is denominated in dollars, so any weakening of the dollar makes bullion more affordable in terms of other currencies.
Hopes of a peace deal in Ukraine, supported the euro against the dollar.
Stubborn U.S. inflation, sparked by worries over tariffs, has triggered sentiment that the Federal Reserve may pause cuts in interest rates, possibly not cutting rates again until late 2025.
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(Disclaimer: any opinions expressed in this article are solely those of the author and should not be construed as investment advice.)
