Gold Prices Experience Decline Amid Rising Dollar and Trade War Concerns
Gold prices saw a decline of approximately one percent on Monday, following a record high in the previous session. This drop occurred against the backdrop of a strengthening US dollar and growing concerns about a potential global trade war, fueled by the recent comprehensive tariff measures imposed by President Donald Trump.
In immediate trading, gold fell by 0.9 percent to $2,776.05 per ounce as of 03:03 GMT, after reaching a peak of $2,817.23 on Friday. Similarly, gold futures in the United States experienced a 0.9 percent decrease, bringing the price down to $2,810.80.
Despite the current dip, gold prices remain close to their highest level in three weeks, making gold priced in dollars increasingly expensive for foreign buyers.
On Saturday, President Trump enforced significant tariffs, applying a 25% duty on imports from Canada and Mexico and a 10% tax on goods originating from China. These measures have intensified fears of escalating trade tensions, further impacting global gold prices.
The fluctuations in gold prices underscore the influence of macroeconomic factors, including currency strength and trade dynamics, on commodity markets. As these issues develop, market participants will closely monitor their implications for precious metals and broader economic conditions.