Gold Eases as Investors Exercise Caution Ahead of Trump Tariffs
Gold prices edged down on Tuesday as market participants exercised caution and braced for U.S. President Donald Trump's tariffs on Canada, Mexico, and China to go into effect within hours.
Spot gold edged down 0.2% to $2,887.50 an ouns. gold futures eased 0.2% to $2,895.40.
"This pull back is part of a broader shake-out in markets that could drive prices into the $2,700s before the primary uptrend continues," Capital.com's financial market analyst Kyle Rodda said.
It's a modest move down so far on Tuesday, Rodda said, adding that the clear deterioration in global trade relations and the weaker dollar on fears of a sudden slow down in U.S. growth had given the market a solid boost overnight.
Trump said on Monday that 25% tariffs on goods from Mexico and Canada will take effect from 0501 GMT on Tuesday, along with a doubling of China levies to 20%, stoking fears of a trade war in North America and sending financial markets reeling.
Trump also said reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products.
Source : Reuters
