Gold Falls From Record High as Trade War Supports Precious Assets
Gold fell after rising more than 2% in the previous two sessions to record highs, as President Donald Trump’s tariffs boosted demand for precious assets.
Bullion was near $2,912 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. But U.S. Commerce Secretary Howard Lutnick hinted at some relief for the two U.S. neighbors, telling Fox Business that he could be on the way to reducing 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 $2,912.25 an ounce by 1:37 p.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and platinum were little changed, while palladium gained.
Source: Bloomberg
