With trade concerns continuing to influence market mood and investors keenly awaiting U.S. inflation data later this week for clues about the Federal Reserve’s next steps, gold slightly declined to $2,900 an ounce but stayed close to record highs.
President Donald Trump added to the uncertainty by threatening to impose retaliatory tariffs on Canadian timber and dairy products soon.
This comes after China imposed tariffs on a number of U.S. agricultural items today, Canada’s retaliatory actions are still in force, and the U.S. delayed 25% tariffs on a number of Canadian and Mexican commodities for a month.
Trump’s refusal to specify in a Fox News interview on Sunday whether the economy is headed towards a recession or increasing inflation further unsettled markets.
Jerome Powell, the chair of the Federal Reserve, said Friday that despite rising economic uncertainty, policymakers do not see the need to lower interest rates.