Monday saw gold prices rise to almost $2,870 an ounce as safe haven flows into bullion were triggered by worries about U.S. President Donald Trump’s tariff intentions.
Trump’s planned 10% charge on Chinese imports and tariffs on Mexican and Canadian goods, which are scheduled to go into effect on March 4, have raised worries about possible retaliation and wider trade conflicts.
Gold, which is frequently viewed as a hedge against rising prices, is also supported by the inflationary effect of these measures.
Its attraction was increased when the U.S. dollar fell from a two-week high, lowering the cost of the metal for holders of other currencies.
Furthermore, market expectations for interest rate reduction by the Federal Reserve have increased because to the renewed concerns about the state of the U.S. economy, which has made bullion an even more alluring non-yielding asset.