(Bloomberg) — Gold edged lower after rising more than 2% over the previous two sessions toward its record high, as President Donald Trump’s tariff barrage drove haven demand.
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Bullion was near $2,912 an ounce — about $40 shy of the all-time peak reached last week. Trump doubled tariffs on China and imposed 25% levies against Canada and Mexico. However, US Commerce Secretary Howard Lutnick hinted at some relief for the US’s two neighbors, telling Fox Business their could be a path to reduce some of the duties.
There’s widespread concern that trade wars will spur inflation and slow global growth, aiding demand for gold — which is already up more than 40% since the end of 2023 — as a store of value in uncertain times. Bond traders are becoming increasingly certain that the president’s tariffs will rattle the US economy, with a JPMorgan Treasury client survey showing net bullish positions at their highest level in 15 years.
Canada and China retaliated with their own tariffs on Tuesday, with Ottawa imposing phased levies on $107 billion worth of US goods and China putting duties of up to 15% on US agricultural exports. Mexican President Claudia Sheinbaum said on Sunday that her government would announce measures in response to Trump’s action.
Spot gold dipped 0.2% to $2,912.25 an ounce as of 1:37 p.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and platinum were little changed, while palladium advanced.
–With assistance from Preeti Soni.
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