Gold retreated on Friday, after notching its latest record, after President Donald Trump triggered tumult on global markets with sweeping “reciprocal” tariffs.

Spot bullion first surged 1.1% to hit an all-time high of $3,167.84 an ounce as the US leader unveiled his biggest move yet to shake up international trade. But prices later reversed gains to dip as much as 0.55%.

While gold is typically seen as a safe haven in times of heightened uncertainty, it can also join pronounced selloffs as investors are forced to raise cash to offset losses in other markets. Equities tumbled across Asia and Europe — while the dollar slumped — as Trump’s tariffs were widely viewed as more aggressive than expected.

The US leader outlined a package of country-by-country tariffs, with China now facing levies of 54% on its shipments to America. The European Union rate is 20%, double Trump’s global minimum of 10%.

Investors have flocked to gold as concerns mount over the health of the global economy and growing trade frictions. The precious metal has surged 20% this year after a ferocious run in 2024 that was largely driven by massive central bank purchases and robust demand in Asia.

“The demand forces that have led to above-normal gold appreciation are likely to continue,” said Michael Hsueh, an analyst at Deutsche Bank AG. Additional support is expected from central bank buying, bullion-backed exchange-traded fund accumulation in developed markets, and Chinese insurance firms’ potential to make a “significant allocation” of the precious metal, he said.

Bullion was one among many metals exempted from the tariffs, according to a White House fact sheet. That reduces the risk, for now, of big price divergences between the US and global markets.

Meanwhile, silver and palladium will be hit by the negative impact to global growth expected from the tariffs, Hsueh said.