Gold Pulls Back Sharply Off Yesterday's Record Closing High

(RTTNews) - The price of gold showed a substantial move to the downside during trading on Thursday, giving back ground following the rebound seen in the previous session.

After climbing $21 or 0.7 percent to $1,139.90 an ounce on Wednesday, gold for April delivery tumbled $42.90 or 1.4 percent to $3,097 an ounce.

The steep drop by the price of the precious metal came amid a broad sell-off in financial markets around the world after President Donald Trump revealed his plan to impose sweeping tariffs on U.S. trade partners.

Trump's "reciprocal tariff" plan calls for a baseline 10 percent tariff to be imposed on all U.S. imports except those compliant with the United States-Mexico-Canada Agreement.

Certain countries deemed the "worst offenders" will face much higher tariffs, with countries like Cambodia, Laos, Madagascar and Vietnam set to be charged nearly 50 percent.

While gold is often seen as a safe haven, traders may have taken the opportunity to cash in on recent strength after the precious metal reached a record closing high on Wednesday.

Selling pressure was relatively subdued compared to other markets, however, with a slump by the value of the U.S. dollar helping limit the downside for gold.