Investors pause after gold's record highs

Gold prices have steadied after surging to a record high amid early signs of consolidation following the rally built on fears around US President Donald Trump's trade policies.

- Clyde Russell

The precious metal eased to close at $3,287.72 (108,954 baht) an ounce on Wednesday, down 6.1% from the all-time peak of $3,500.05 hit on April 22.

However, spot gold is still up 30% from the low of $2,536.71 an ounce on Nov 14, in the days following Mr Trump's victory in the election against former Vice President Kamala Harris.

Data from the World Gold Council (WGC) shows that the rally has almost entirely been driven by investment flows, largely spurred by fears that the global economy will be hit hard by Mr Trump's trade tariffs, which are poised to cut growth while boosting inflation in the United States.

Total gold investment flows skyrocketed by 170% in the first quarter of 2025 from the same period a year earlier, reaching 552 metric tons, the highest since the first quarter of 2022, the WGC said in its report on Wednesday.

There were strong gains in flows into exchange-traded funds (ETFs), with demand of 226.5 tonnes in the first quarter, up from just 18.7 tonnes in the last quarter of 2024, and a massive surge from the sale of 113 tonnes in the first quarter of last year.

In addition to investment in ETFs, physical bar and coin buying also gained, rising 3% to 325.4 tonnes in the first quarter from the same period a year earlier.