- Gold up over 1% for the week, hit record-high on Thursday
- Gold rally remains unchallenged unless prices drop to around $2,850- analyst
- Silver, palladium on track for weekly gain, platinum eyes decline
Feb 21 (Reuters) - Gold prices fell on Friday but were set for an eighth straight week of gains on the back of two consecutive record highs, as safe-haven demand remained strong amid concerns about U.S. President Donald Trump's tariff plans.
Spot gold shed 0.4% to $2,926.54 an ounce by 0945 GMT. Bullion has gained around 1.5%this week after rising to a record $2,954.69 on Thursday.
U.S. gold futures fell 0.5% to $2,940.90.
"The non-stop rally since December remains unchallenged unless prices drop to around $2,850," said Ole Hansen, head of commodity strategy at Saxo Bank.
Prices have shattered two record highs this week to trade above $2,950/oz, as uncertainties surrounding global economic growth and political instability have underscored investor appetite for bullion, which has risen 11.5% so far in 2025.
Trump's fresh bout of tariff plans announced earlier this week includes duties on lumber and forest products, on top of previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.
This comes after the imposition of an additional 10% tariff on Chinese imports and a 25% tariff on steel and aluminium.
"Gold has been displaying resilience with short-lived retracements, as lingering U.S. trade uncertainties reinforce its appeal as a hedge," IG market strategist Yeap Jun Rong said.
Market participants are also looking out for clues on the Federal Reserve's interest rate trajectory, in the light of Trump's policies being seen as inflationary.
Higher inflation may force the Fed to keep interest rates elevated, which in turn dampens non-yielding gold's appeal.
Elsewhere, physical gold demand among top consumers, China and India, remained negligible due to record high prices.
Spot silver eased 0.1% to $32.88 an ounce, and palladium dipped 1.2% to $965.25. Both metals were headed for weekly gains.
Platinum shed 1.2% to $966.30 and eyed a weekly decline.
Reporting by Sarah Qureshi, Rahul Paswan and Anjana Anil in Bengaluru; Editing by Tasim Zahid
Source: Reuters