His threat dented the currencies of the bloc and pushed up the dollar, as traders feared even more protectionist policies from the U.S. under Trump. The president-elect had last week threatened additional tariffs on China, Canada, and Mexico- a move that could reignite a global trade war.
The yellow metal was nursing some losses for the week after the announcement of an Israel-Hezbollah ceasefire. But heightened tensions between Russia and Ukraine saw prices trim some weekly losses on Thursday and Friday.
Gold prices fell slightly in Asian trade on Thursday after signs of sticky U.S. inflation and a strong economy sparked doubts over just how much the Federal Reserve will cut interest rates.
U.S. President-elect Donald Trump threatened to impose additional trade tariffs on China, Canada and Mexico when he takes office, sparking increased concerns over a renewed trade war between the world’s largest economies.
The yellow metal was nursing steep losses from the prior session after multiple reports suggested that a ceasefire between Israel and Lebanon was close, which dented safe haven demand.
Both contracts last week notched their biggest weekly gains since late September to reach their highest settlement levels since Nov. 7 after Russia fired a hypersonic missile at Ukraine in a warning to the United States and Britain following strikes by Kyiv on Russia using U.S. and British weapons.
Both contracts jumped 2% on Thursday and are set to cap gains of more than 4% this week, the strongest such performance since late September, as Moscow stepped up its Ukraine offensive after Britain and the United States allowed Kyiv to strike Russia with their weapons.
Gold rose for a fourth consecutive session, extending a rebound from over two-month lows. But the yellow metal’s pace of gains now appeared to be slowing amid pressure from the dollar, as traders second-guessed expectations for lower U.S. interest rates.
Still, Russian Foreign Minister Sergei Lavrov said the country would do all it could to avoid nuclear war. But hostilities with Ukraine persisted, as both countries launched debilitating attacks against each other over the past week.
Gold prices rose in Asian trade on Tuesday, extending a recovery from two-month lows as the dollar retreated from recent peaks, while increased tensions between Russia and Ukraine also fed safe haven demand.
