Gold prices fell over 1 percent on Friday due to profit-taking, although they remained poised for their seventh straight weekly rise, driven by fears of a global trade war in the wake of US President Donald Trump's push for reciprocal tariffs.

Spot gold fell 1.6 percent to $2,882.99 an ounce as of 01:40 p.m. ET (1840 GMT), but remained on track for a weekly gain of 0.8 percent. Bullion hit a record peak of $2,942.70 on Tuesday. US gold futures settled 1.5 percent lower at $2,900.70.

"There are some technical factors in play; the inability to get the all-time high set on Tuesday leaves a potential double top, and we see some profit-taking ahead of the weekend," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

There is still a bullish trend in gold driven by several factors like tariffs, underlying inflation, and a weaker U.S. dollar, with a growing shift from paper to physical gold further fuelling this trend, said Alex Ebkarian, chief operating officer at Allegiance Gold.

On Thursday Trump directed his economic team to formulate plans for reciprocal tariffs on every country that imposes taxes on U.S. imports. This potentially inflationary move could drive further safe-haven demand for gold, a traditional hedge against rising prices and geopolitical uncertainty.

Meanwhile, US retail sales dropped by the most in nearly two years in January, suggesting a sharp slowdown in economic growth early in the first quarter.