New York: Gold prices edged higher on Monday, helped by a weaker US dollar and safe-haven flows triggered by fears of a global trade war, while investors awaited further clues to gauge the Federal Reserve’s interest rate stance. Spot gold was up 0.1 percent at US$2,914.42 an ounce, while US gold futures rose 0.3 percent to US$2,921.90.
According to Qatar News Agency, US President Donald Trump imposed new 25 percent tariffs on imports from Mexico and Canada last Tuesday, along with fresh duties on Chinese goods. He later exempted many imports from Mexico and some from Canada from those tariffs for a month, creating uncertainty in the markets and fanning worries about US inflation and growth.
Worries over Trump’s tariff policies pushed safe-haven gold to a record high of US$2,956.15 on Feb 24. Investors are closely monitoring the situation to gauge its potential impact on the economy and are seeking refuge in gold as a protective measure against possible market volatility.