Gold prices rose slightly on Tuesday as President-elect Donald Trump’s threats to impose more tariffs boosted demand for safe havens, although a stronger dollar limited any significant gains for the metal.
The yellow metal was suffering sharp losses from the previous session after multiple reports indicated that a ceasefire between Israel and Lebanon was imminent, which affected safe haven demand.
Spot gold rose 0.1% to $2,628.69 an ounce, while gold futures expiring in December rose 0.4% to $2,653.75 an ounce.
Trump has threatened to impose tariffs of 10% on imports from China, and 25% on imports from Canada and Mexico, claiming that these measures are intended to stop the alleged flow of illegal immigrants and illicit drugs through US border countries.
His threats exacerbated investors’ fears about a renewed global trade war, especially with China. Trump campaigned on promises of tough trade measures against Beijing.
China denounced the threat, with the prospect of retaliation from Beijing also dampening risk appetite. However, bigger gains in gold were capped as the dollar rose after Trump’s announcement and the dollar returned to a two-year high last week.
