Economy News – Baghdad
Gold prices experienced a decline today, with market participants adopting a cautious stance ahead of the imminent implementation of customs duties imposed by U.S. President Donald Trump on Canada, Mexico, and China.
As of 03:00 GMT, gold in spot transactions had decreased by 0.3 percent, trading at $2,885.40 an ounce. Similarly, U.S. gold futures fell by 0.2 percent to $2,895.40.
According to Kyle Roda, financial market analyst at Capital Com, “This decline is part of a broader market reorganization process, which could see prices drop to $2,700 before the primary bullish trend resumes.”
Roda noted that market sentiments were somewhat restrained on Tuesday, with heightened concerns over global trade relations and a weaker dollar—stemming from fears of a potential slowdown in U.S. economic growth—providing strong upward momentum overnight.
On Monday, Trump announced that a 25% tariff on goods from Mexico and Canada would take effect at 0501 GMT on Tuesday, alongside a doubling of tariffs on China to 20%. These developments heightened fears of a trade war in North America, triggering volatility across financial markets.
Furthermore, Trump indicated that reciprocal tariffs would come into effect on April 2 for countries imposing tariffs on American products.
These tariff measures, characterized by some as dramatically excessive, have intensified the flow toward safe-haven assets, with gold appreciated by 10% so far this year.
In addition to gold, silver prices in spot transactions decreased by 0.6 percent to $31.50 an ounce, platinum fell by 0.3 percent to $950.63, and palladium saw a decline of 1.1 percent to $927.46.
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