Market Update: Gold Prices Decline After Historic Surge
Gold prices experienced a decline of nearly 1 percent today, following a record high in the previous trading session.
The US dollar has strengthened against other currencies as trade tensions escalated, particularly after US President Donald Trump announced tariffs on multiple trading partners, formally igniting a trade war.
The price of gold dipped by 0.9 percent, settling at $2,776 per ounce on Monday. Future contracts indicated further decrease with prices hitting $2,810 per ounce.
In tandem with this decline, the US dollar achieved its strongest level in three weeks against various currencies, complicating gold purchases in nations that utilize alternatives to the dollar and dampening overall demand for the precious metal.
Recently, President Trump imposed a 25 percent tariff on imports from Mexico and Canada, with an additional 10 percent tariff on Chinese goods set to take effect on Tuesday.
According to Tim Waterer, an analyst at KCM Trade Consulting, “The fall in gold prices may be limited, as concerns regarding the escalation of the trade war tend to increase the appeal of gold and other safe-haven assets.”
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