Banking and FinanceCommodities

Gold Prices Dip Amid Rising Dollar as Trump Unveils New Customs Tariffs

Economic Update – Baghdad

Gold prices experienced a decline of approximately one percent today, continuing a notable adjustment after reaching a historical high in the previous session. This shift coincides with a rise in the US dollar and growing apprehensions regarding a potential global trade war, triggered by the comprehensive customs tariff measures enacted by US President Donald Trump.

In real-time transactions, the price of gold fell by 0.9 percent, settling at $2,776.05 per ounce as of 03:03 GMT, down from a record peak of $2,817.23 on Friday.

Gold futures traded in the United States also dropped 0.9 percent to $2,810.80.

This price drop leaves gold hovering near its highest level in three weeks, which may impact its affordability for international buyers.

On Saturday, President Trump announced the imposition of a 25% customs duty on imports from Canada and Mexico, along with a 10% duty on goods imported from China.

Officials from the White House have confirmed that there will be no exceptions to these customs duties.

In retaliation, Canada and Mexico have indicated plans for countermeasures, while China has stated its intention to challenge these customs tariffs at the World Trade Organization and will consider unlimited counter actions.

“Market sentiment appears shaky due to the customs situation, and although the demand for safe-haven assets such as gold may help mitigate immediate declines, the strength of the US dollar could act as a deterrent,” commented Tim Water, Chief Market Analyst at KCM.

“Gold prices need to hold within a range of $2,750 to avert a more significant downturn,” he added.

Gold remains a preferred investment during times of economic and geopolitical uncertainties.

Additionally, silver prices fell 1.4 percent to $30.87 per ounce, while platinum declined by 1.9 percent to $958.72, and palladium decreased by 1.7 percent to $991.50.

For more updates, subscribe to our channel on Telegram

Shares: