Gold Holds Decline as Markets Weigh Latest Trump Tariff Threats
Gold held a decline as traders weighed President Donald Trump’s latest tariff threats, while a cloud lingered over stock markets due to a global technology rout.
Bullion traded near $2,742 an ounce after Trump said he’d impose tariffs on steel, aluminum and copper imports, without giving details on the magnitude. Investors are focused on the potential ramifications of the new administration’s pledge to roll out sweeping import duties which, if enacted, could threaten a trade war and boost demand for haven assets. The dollar gained following Trump’s comments — limiting the upside for gold which often moves in the opposite direction to the greenback.
Traders were also monitoring the fallout from Wall Street amid mounting concerns that a cheap artificial intelligence model from Chinese startup DeepSeek could make valuations in the sector tough to justify. Bullion tumbled 1.1% on Monday as traders sold the precious metal to cover losses in equities, including almost $1 trillion wiped from the Nasdaq.
Gold set a series of records in 2024, with gains driven by the Federal Reserve’s pivot to looser monetary policy, heightened geopolitical tensions, and central-bank buying. The precious metal may get a further boost this year from any further rate cuts, and a possible increase in haven demand as Trump injects uncertainty into financial markets.
Spot gold was up 0.1% to $2,743.33 an ounce at 8:34 a.m. in Singapore, less than $50 away from a record high high. The Bloomberg Dollar Spot Index rose for a second day, climbing 0.2%. Silver and platinum dipped, while palladium edged higher.
Source : Bloomberg
