By Rahul Paswan
(Reuters) – Gold prices fell nearly 1% on Monday after rising to an all-time high in the previous session, as the U.S. dollar strengthened on mounting fears of a global trade war following U.S. President Donald Trump’s sweeping tariff measures.
Spot gold fell 0.6% to $2,784.30 per ounce by 0534 GMT after prices hit a record peak at $2,817.23 on Friday. U.S. gold futures shed 0.7% to $2,815.20.
While tariff announcements should have typically driven up gold prices due to increased safe-haven demand, a higher dollar and expectations of fewer rate cuts are exerting pressure, Reliance Securities’ senior analyst Jigar Trivedi said. [USD/]
Trump on Saturday levied 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting Feb. 4. White House officials said there would be no exclusions from the tariffs.
“The $2,750 range would need to hold to protect from a larger pullback,” said Tim Waterer, chief market analyst at KCM Trade.
Canada and Mexico ordered retaliatory measures, while China said it would challenge tariffs at the World Trade Organization and take unspecified countermeasures.
Citi said that further tariff escalation should be bullish for gold and will likely push prices to $3,000 per ounce.
Meanwhile, J.P. Morgan noted that bearish contagion from equities could weigh on gold in the immediate near-term but disruptive tariffs continue to fuel a medium-term bull case for bullion.
COMEX gold speculators cut net long position by 3,766 contracts to 230,592 in the week to Jan. 28, data showed. [CFTC/]
Spot silver dropped 1.3% to $30.91 per ounce, platinum fell 1.5% to $963.10 and palladium declined 0.5% to $1,003.34.
(Reporting by Rahul Paswan and Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Sumana Nandy)
