Gold Prices Decline Amid Trade Tensions
Gold prices experienced a decline on Tuesday, driven by cautious trading sentiment and concerns regarding newly imposed tariffs by U.S. President Donald Trump on Canada, Mexico, and China, which took effect shortly after.
As of 03:00 GMT, the price of gold in spot transactions decreased by 0.3% to $2,885.40 per ounce. Meanwhile, U.S. gold futures saw a slight drop of 0.2%, falling to $2,895.40.
Kyle Roda, a financial market analyst with Capital Com, commented, “This decline is indicative of a broader market reorganization, potentially pushing prices down to $2,700 before a primary upward trend resumes.”
Roda noted that market incentives appeared modest early Tuesday but highlighted that deteriorating global trade relations and a weakening dollar—triggered by apprehensions of a sudden slowdown in U.S. economic growth—provided substantial market momentum overnight.
Trump announced on Monday that customs duties of 25% on goods from Mexico and Canada would be implemented starting at 0501 GMT on Tuesday. Additionally, the tariffs on China were raised to 20%, igniting fears of a trade war in North America which contributed to volatility in financial markets.
Moreover, Trump indicated that reciprocal tariffs would commence on April 2 for countries that impose tariffs on American goods.
The announcement of these tariffs has led to significant increases in demand for safe-haven assets like gold, which has appreciated by 10% so far this year.
In other precious metals, silver prices fell by 0.6% to $31.50 per ounce, platinum decreased by 0.3% to $950.63, and palladium fell by 1.1% to $927.46.
| Metal | Price (USD/oz) | Change (%) |
|---|---|---|
| Gold | $2,885.40 | -0.3 |
| Gold Futures | $2,895.40 | -0.2 |
| Silver | $31.50 | -0.6 |
| Platinum | $950.63 | -0.3 |
| Palladium | $927.46 | -1.1 |
As the market continues to grapple with uncertainties, the evolution of trade policies and their implications for global economics will remain a focal point for investors and analysts alike.
