Gold prices fell in early Asian hours on Monday, pressured by a stronger dollar as fears of a global trade war mounted after U.S. President Donald Trump imposed sweeping tariffs on Canada, Mexico and China over the weekend.
FUNDAMENTALS
* Spot gold dipped 0.6% to $2,784.84 per ounce by 0113 GMT. U.S. gold futures fell 0.3% to $2,825.80.
* The U.S. dollar index hovered near a three-week peak, making greenback-priced gold more expensive for foreign buyers. [USD/]
* Trump levied 25% tariffs on imports from Canada and Mexico and 10% on goods from China starting on Tuesday. * Canada and Mexico ordered retaliatory measures to Trump’s 25% 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.
* 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. [CFTC/]
* Gold was also weighed down by some profit-booking after prices surpassed the key $2,800 mark for the first time last week, hitting an all-time high at $2,817.23. [GOL/]
* Spot silver dropped 1.2% to $30.94 per ounce, platinum shed 1.1% to $967.20, and palladium was 0.5% lower at $1,003.26.
DATA/EVENTS (GMT)
0145 China Caixin Mfg PMI Final Jan
0850 France HCOB Manufacturing PMI Jan
0855 Germany HCOB Mfg PMI Jan
0900 EU HCOB Mfg Final PMI Jan
0930 UK S&P Global Manufacturing PMI Jan
1000 EU HICP Flash YY Jan
1000 EU HICP-X F,E,A&T Flash YY, HICP-X F, E, A, T Flash MM Jan
1445 US S&P Global Mfg PMI Final Jan
1500 US ISM Manufacturing PMI Jan