- Gold prices declined during the Asian trading session on Tuesday. Still, they remained close to recent highs as demand for the safe-haven asset was supported by concerns over rising U.S. tariffs and deteriorating relations between Washington and Beijing.

- The yellow metal is still near its record peak amid continued demand as a traditional safe-haven asset. This trend was reinforced by U.S. President Donald Trump’s indication that he still plans to impose a 25% tariff on Canada and Mexico by next week.

- This comes after Trump signed a sweeping executive order over the weekend to impose further trade and investment restrictions against China, signaling a potential further deterioration in relations.

- Spot gold prices fell 0.5% to $2,947.73 per ounce, while gold futures contracts for April delivery declined 0.3% to $2,952.99 per ounce. Spot prices hit a record high of $2,956.37 per ounce last week.

- Gold demand remained supported by Trump's recent comments on tariffs against Canada and Mexico, which could take effect as the March 4 deadline approaches. Such a move is likely to prompt retaliatory measures from both countries, further escalating the global trade war.

- Additionally, Trump’s hardline stance against China could lead to further retaliation from Beijing. Earlier in February, Trump imposed a 10% tariff on all Chinese imports, prompting Beijing to respond with a series of tariffs and export restrictions.

- The Trump administration has also been considering stricter controls on chip exports to China, a move that could further anger Beijing. This followed Trump’s signing of a broad executive order over the weekend aimed at further restricting Chinese investments and exports.

- The U.S. dollar fell to its lowest level in over two months this week, benefiting metal prices as investors worried about a potential slowdown in the U.S. economy.

- Treasury yields also declined, as data over the past two weeks showed weakening U.S. consumer confidence and spending. This negatively impacted the dollar amid growing bets that the Federal Reserve may have to cut interest rates further to support the economy. The upcoming U.S. GDP data for the fourth quarter, set to be released later this week, is expected to provide further insights into this trend.

- Meanwhile, platinum futures fell 0.5% to $971.65 per ounce, while silver contracts remained stable at $32.623 per ounce.

-------------------------------------
For more articles click here