Gold Prices Fall as Stronger Dollar, Trump Tariff Threats Weigh
Gold prices declined in Asian trade on Monday, pressured by a stronger dollar and threats of steep tariffs from U.S. President-elect Donald Trump on the BRICS group of countries. The yellow metal fell 0.9% to $2,629.74 an ounce, while February gold futures dropped 1.1% to $2,652.11 an ounce.
Trump’s threat to impose “100% tariffs” on the BRICS bloc, warning them against seeking alternatives to the dollar, dented the currencies of the bloc and pushed up the dollar. The president-elect’s threat buoyed the dollar, which in turn weighed on metal markets across the board. Uncertainty over higher long-term inflation under Trump, which could keep interest rates elevated, also rattled metal markets.
Other precious metals retreated, with silver falling 0.7% to $945.90 an ounce, and platinum dropping 1.5% to $30.648 an ounce.
Copper prices also fell, despite positive signals from top copper importer China. Benchmark copper on the London Metal Exchange fell 0.5% to $8,976.50 a ton, while March copper futures dropped 0.7% to $4.1145 a pound. China’s manufacturing activity rose more than expected in November, but markets feared more economic headwinds from a trade war with the U.S.
Traders are holding out for more stimulus measures from two key political meetings set to take place later in December.