Gold prices dropped as renewed trade concerns bolstered the dollar, following comments from former President Donald Trump about potential tariffs on Canada and Mexico. The stronger dollar weighed on the metal, which typically moves inversely to the U.S. currency, as investors shifted toward safer liquid assets.
Trump’s remarks, aimed at addressing alleged trade imbalances, heightened uncertainty in global markets. The possibility of tariffs on key trading partners spurred demand for the dollar, which serves as a haven during geopolitical or economic tensions. In turn, gold lost appeal, declining from recent highs as market participants reassessed risk strategies.
By capitalizing on the dollar’s rise, traders positioned against gold, citing reduced short-term demand. This reflects a broader trend of sensitivity in commodities markets to policy-driven news, showcasing how political developments shape economic sentiment.
