Gold remained near its highest level since October, as traders weighed the potential impact of President Donald Trump’s latest tariff threats against China and the European Union on the global economy. The precious metal was trading close to $2,752 per ounce, just shy of its all-time peak, after rising approximately 2% this week. The rally has been driven by increasing demand for safe-haven assets as investors react to the new administration’s aggressive trade rhetoric. Trump has singled out China, the European Union, Canada, and Mexico as possible targets for import tariffs, though uncertainty surrounds whether these threats will materialize.
In addition to trade concerns, traders are focusing on the broader implications of Trump’s domestic policies, including his promise to cut taxes and reduce immigration. Economists warn that these actions could worsen the nation’s fiscal situation and reignite inflationary pressures.
Gold has enjoyed a strong run over the past year, driven by the Federal Reserve’s shift toward cutting interest rates, rising geopolitical tensions, and strong central-bank demand. The metal could see further gains if investors continue to seek safe-haven assets amid growing concerns about strained U.S. relations with other countries.
At 9:53 a.m. in Singapore, spot gold eased by 0.2%, trading at $2,751.59 per ounce. The Bloomberg Dollar Spot Index remained unchanged, while silver and platinum saw slight declines. Palladium held steady.
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