Gold Declines as Trump-Colombia Tariff Skirmish Buoys Dollar
Gold dipped, as the dollar rose after President Donald Trump held off from imposing threatened tariffs on Colombia as the two countries reached a deal on the return of deported migrants.
Bullion traded near $2,760 an ounce after posting a fourth straight weekly gain that took it close to a record high. The White House said earlier it would impose an emergency 25% levy on Colombian imports after the country refused to allow two US military planes carrying deported migrants to land, but then called it off saying the South American nation had agreed to Trump’s terms.
The moves highlighted the readiness of the new US administration to use trade curbs in political disputes, damping risk sentiment and aiding the dollar, making gold more expensive for many buyers.
The precious metal has rallied around 5% this year, helped by a falling dollar. There was relief last week as Trump didn’t immediately impose threatened tariffs, but the dispute with Colombia showed how that could change quickly. The US has identified China, Canada and Mexico as potential targets for levies, raising concerns about trade wars and adding to haven demand.
The disagreement with Colombia injected uncertainty into the market, but much of this has already been priced in, said Soni Kumari, a commodities strategist at ANZ Group Holdings Ltd. “We believe the market will focus on macro developments from here - the dollar and US yield moves.”
Spot gold declined 0.5% to $$2,757.87 an ounce as of 12:48 p.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.3%. Silver, platinum and palladium all moved lower.
Source : Bloomberg
