Gold prices tumbled sharply during Asian trading on Thursday (27th), briefly falling below $2,900 per ounce as the U.S. dollar strengthened following renewed tariff threats from President Donald Trump. The decline pushed gold further away from its recent record highs, despite lingering market uncertainty.

The spot gold price dropped 0.9% to $2,890.73 per ounce , while gold futures for April delivery also fell 0.9% to $2,903.39. This marks a potential weekly decline of 1.4% to 2% for the precious metal, which had recently touched a high of $2,956.37.

Analysts attribute the pressure on gold to two key factors : a rebounding U.S. dollar and reports of progress in U.S.-led Ukraine peace negotiations. The dollar index, which had hit a two-month low earlier in the week, appears poised for a modest weekly gain, making dollar-denominated commodities like gold more expensive for foreign buyers.

"While gold remains a reliable hedge against geopolitical risks, the combination of dollar strength and reduced immediate demand for safe havens is creating headwinds," said a market strategist in Singapore.

The tariff developments have created fresh market turbulence. On Wednesday, Trump announced plans to impose 25% tariffs on European steel and aluminum imports , while suggesting a potential delay in implementing similar tariffs against Canada and Mexico until early April. These protectionist measures have amplified investor concerns about potential trade wars and their impact on global growth.

Market participants note that gold's fundamental appeal as a safe-haven asset remains intact, particularly given ongoing geopolitical tensions and the potential for economic slowdown in the U.S. However, the metal's near-term momentum appears constrained as traders weigh these competing factors.

The broader metals complex also faced pressure from the stronger dollar, with industrial metals tracking gold's downward movement during the Asian session. Analysts suggest the market will closely monitor upcoming U.S. economic data and any developments in trade negotiations for further direction.