Investing.com-- Gold prices fell in Asian trade on Friday, extending a fall from recent record highs amid pressure from a stronger dollar as traders bet that U.S. interest rates will remain unchanged in the near-term.

The yellow metal still traded above the $3,000 an ounce milestone cleared last week, as safe haven demand remained high in the face of heightened uncertainty over the U.S. economy and President Donald Trump’s trade tariffs.

Spot gold fell 0.5% to $3,029.61/oz, while gold futures expiring in May fell 0.2% to $3,037.09 an ounce by 00:57 ET (04:57 GMT). Spot prices hit a record high of $3,057.51/oz earlier this week.

Gold pressured by stronger dollar, but haven demand remains

Gold’s fall from record highs was driven chiefly by a recovery in the dollar , which recouped all of its losses seen after Wednesday’s Federal Reserve meeting.

The greenback was buoyed by growing conviction that the Fed will leave interest rates unchanged in the near-term amid heightened uncertainty over economic growth and Trump’s tariffs.

Traders also appeared to have looked past repeated calls from Trump for the Fed to cut rates.

The central bank had earlier this week left rates unchanged , and signaled no near-term changes amid uncertainty over sticky inflation and the impact of Trump’s tariffs. The Fed also lowered its 2025 growth forecast and hiked its inflation outlook.

This saw traders bet that the Fed will have little impetus to cut interest rates in the near-term, especially as the central bank seeks more clarity on the economy and Trump’s tariffs.

Broader metal prices were also pressured by a strong dollar. Platinum futures slid 0.7% to $987.15 an ounce, while silver futures fell 0.8% to $33.735 an ounce.

Copper retreats after strong gains; China, tariffs in focus

Among industrial metals, copper prices retreated on Friday after rising sharply on speculation over tighter supplies due to Trump’s tariffs. Optimism over stimulus measures in top importer China also aided copper.

Benchmark copper futures on the London Metal Exchange fell 0.2% to $9,910.30 a ton after breaching $10,000 a ton earlier this week. May copper futures fell 0.3% to $5.1020 a pound.

The red metal benefited from speculation over Trump’s plans to impose 25% tariffs on all U.S. copper imports, which could severely crimp U.S. supplies in the near term.

In China, several copper smelters were seen shutting down operations during a typically busy period, amid growing supply shortages of copper concentrate. A shortage in refined copper products from China is also expected to drive up prices in the near-term.