By Anjana Anil and Anushree Mukherjee
(Reuters) – Gold prices edged down on Tuesday as market participants braced for the impact of U.S. President Donald Trump’s tariffs on Canada, Mexico, and China took effect.
Spot gold eased 0.1% to $2,892.00 an ounce, as of 0536 GMT. U.S. gold futures were steady at $2,902.20.
“This pull back is part of a broader shake-out in markets that could drive prices into the $2,700s before the primary uptrend continues,” Capital.com’s financial market analyst Kyle Rodda said.
It’s a modest move so far on Tuesday, Rodda said, adding that the clear deterioration in global trade relations and the weaker dollar on fears of a sudden slow down in U.S. growth had given the market a solid boost overnight.
U.S. President Donald Trump’s new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, launching new trade conflicts with the top three U.S. trading partners.
China responded immediately, with additional tariffs of 10%-15% on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. entities.
Trump’s tariffs are widely seen as inflationary, and have prompted increased safe-haven flow into bullion, which has gained around 10% so far for the year.
However, higher U.S. inflation may force the Federal Reserve to keep rates higher for longer, which would dent non-yielding gold’s appeal.
Investors are waiting for the ADP employment report due on Wednesday and the U.S. non-farm payrolls report on Friday for more hints on the Fed’s rate trajectory.
JPMorgan said they hold a long-term structural bullish view for gold with price target of close to $3,000/oz in the fourth quarter of 2025.
Spot silver added 0.1% to $31.71 an ounce, platinum firmed 0.2% to $955.42, and palladium slipped 0.8% to $930.64.
(Reporting by Anjana Anil and Anushree Mukherjee in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)
