Gold Prices Steady Near Record High as Trade War Supports Safe-Haven Demand
Gold prices held steady near record highs, after rising more than 2% in the previous two sessions as President Donald Trump’s tariffs boosted safe-haven demand.
Bullion was near $2,913 an ounce — about $40 below an all-time peak hit last week. Trump has doubled tariffs on China and imposed 25% levies on Canada and Mexico. However, U.S. Commerce Secretary Howard Lutnick hinted at relief for the two U.S. neighbors, telling Fox Business there may be ways to reduce some duties.
There are widespread concerns that the trade war will spur inflation and slow global growth, helping demand for gold — which has risen more than 40% since the end of 2023 — as a store of value in uncertain times. Bond traders are increasingly convinced that the president’s tariffs will shake up the U.S. economy, with a JPMorgan Treasury client survey showing net bullish positions at a 15-year high.
Canada and China retaliated with their own tariffs on Tuesday, with Ottawa imposing phased levies on $107 billion worth of U.S. goods and China imposing duties of up to 15% on U.S. farm exports. Mexican President Claudia Sheinbaum said Sunday that her government would announce measures in response to Trump’s actions. Spot gold fell 0.2% to $2,913.13 an ounce by 8:08 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.1%, down for a third straight session. Silver, platinum and palladium were all little changed.
Source: Bloomberg
