GOLD prices fell in early Asian hours on Monday (Feb 3), pressured by a stronger US dollar as fears of a global trade war mounted after US President Donald Trump imposed sweeping tariffs on Canada, Mexico and China over the weekend.
Spot gold dipped 0.6 per cent to US$2,784.84 per ounce by 0113 GMT. US gold futures fell 0.3 per cent to US$2,825.80.
The US dollar index hovered near a three-week peak, making greenback-priced gold more expensive for foreign buyers.
Trump levied 25 per cent tariffs on imports from Canada and Mexico and 10 per cent on goods from China starting on Tuesday.
Canada and Mexico ordered retaliatory measures to Trump’s 25 per cent tariffs, which promise to jolt the economies of all three countries, while China said it would challenge tariffs at the World Trade Organization and take unspecified countermeasures.
Trump’s tariff plans are widely perceived as inflationary, which could drive up safe-haven demand for bullion as it is traditionally seen as a hedge against price pressures and geopolitical uncertainty.
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About 12.9 million troy ounces of gold have been delivered to COMEX-approved warehouses, the highest since July 2022 as investors flock to the safe-haven asset.
Meanwhile, Comex gold speculators cut net long position by 3,766 contracts to 230,592 in the week to Jan 28.
Gold was also weighed down by some profit-booking after prices surpassed the key US$2,800 mark for the first time last week, hitting an all-time high at US$2,817.23.
Spot silver dropped 1.2 per cent to US$30.94 per ounce, platinum shed 1.1 per cent to US$967.20, and palladium was 0.5 per cent lower at US$1,003.26. REUTERS
