Gold’s recent advances were halted on Wednesday as it fell below $2,910 an ounce due to pressure from rising US Treasury rates.
Due to demand for safe haven assets after the imposition of US tariffs, the metal managed to stay reasonably close to its record highs.
Trump increased trade tensions and sparked retaliation Tuesday when he imposed 25% taxes on imports from Mexico and Canada and raised penalties on Chinese goods to 20%.
However, US Commerce Secretary Howard Lutnick proposed that Canada and Mexico may be eligible for tariff relief.
Amid news of possible sanctions relaxation for Russia, the United States halted military supplies to Ukraine, further increasing the safety appeal of gold.
Recent statistics indicated economic pressure, which strengthened the case for more rate reduction. In the meanwhile, markets await the US employment report and the ISM Services PMI for clues about Federal Reserve policy.