Gold prices ticked higher overnight, with spot bullion rising to $3,343 an ounce before easing slightly. The move came as safe-haven demand following a fresh wave of trade tensions and continued geopolitical unease.
Trump’s Thursday evening announcement of a surprise 35% tariff on Canadian imports, up from the previously threatened 25%, hit Canada with no warning and jolted markets into risk-off mode. Gold and the yen were among the few assets to benefit as traders sought shelter.
In the Middle East, Israel’s ongoing bombardment of Gaza and stalled ceasefire efforts added another layer of tension. Despite White House claims of progress, there’s been little sign of a breakthrough.
From a technical perspective, bullion needs to break above $3,366 to step out of its current range, as dollar strength and Fed rate uncertainty cap gains.
Bullions’s weekly performance remains muted.
Fo now, gold is trading cautiously, but Trump’s ongoing tariff rhetoric could still provide the catalyst needed to push prices higher.