Gold Heads for Weekly Loss as Trump Tariff Threats Boost Dollar
Gold was on track for its first weekly loss this year as investors booked profits from a record-breaking rally amid increasing concern over President Donald Trump’s tariff agenda, which has strengthened the US dollar.
Bullion traded near $2,875 an ounce, and closed 1.3% lower on Thursday after Trump said tariffs on Canada and Mexico were on track to be implemented on March 4, and that he would impose additional levies on Chinese imports. The greenback climbed 0.6%, making the precious metal less appealing for foreign investors as it’s denominated in the currency.
Gold’s decline in recent days has come after increasing haven demand helped push prices to a record high of $2,956.19 an ounce on Monday. Widespread uneasiness about the impact of Trump’s potential tariffs on US inflation, trade, the global economy and geopolitics have underscored bullion’s role as a store of value in uncertain times.
Later Friday, investors will analyze the US core personal consumption expenditures price index — which excludes often-volatile food and energy costs — for more clues about the monetary policy path. The Federal Reserve’s preferred inflation gauge is expected to cool to the slowest pace since June. Lower rates are positive for non-interest bearing bullion.
Spot gold eased 0.1% to $2,875.19 an ounce at 8:11 a.m. in Singapore, on track for a weekly decline of about 2%. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium all dipped.
Source: Bloomberg
