Gold Steady as Tariff Fears Sweep Market
Gold was steady as fears that US President Donald Trump’s trade war could risk a global economic downturn drove haven demand, signaling a pause in the selloff of the asset in recent days.
The precious metal is up more than 13% this year, despite falling for three previous sessions as investors seek safe assets amid the economic and geopolitical turmoil caused by the US administration’s combative tariff agenda. While gold benefits from periods of uncertainties, extreme dislocations in market can prompt liquidations as investors rush to cover losses elsewhere.
Trump’s tariffs have caused sharp swings in global markets as investors mull its economic impacts. The US president on Monday remained defiant in the face of criticism and recession warnings, saying he was not considering pausing the plan, but added he is open to negotiations with trade partners.
The yellow metal traded at $2,989 an ounce at 8:30 a.m. Singapore time. Silver, palladium and platinum were steady. The Bloomberg Dollar Spot Index was little changed.
Source: Bloomberg
