Gold prices fell on Wednesday after hitting a one-week high, as the dollar and equities dropped, after US President Donald Trump said that he would push ahead with import duties to raise fears of a possible trade war. Spot gold fell by 0.1% to reach $1333.15 an ounce, having earlier hit its highest level since Feb. 26, at $1340.42 an ounce.
Gold futures for April delivery fell by 0.07% to trade at $1334.20 an ounce. According to the most important market analysts in the gold markets, volatility in assets is considered high-risk, and fears of the repercussions of Trump’s statements about the fees contributed to pushing gold to the rise.
Global stocks and the dollar fell after Gary Cohn, one of Trump’s economic advisors and one of the biggest supporters of free trade, resigned, after the president said he was sticking to plans to impose import duties, which some of its opponents described as the first shot in a global trade war. Trump said on Thursday that 25 percent of steel imports and 10 percent of aluminum products were due to be officially announced this week.
Following Cohen’s resignation, the markets were in a state of anger. It was said that his decision was made following a row between Cohen and the US president on imposing import tariffs. Traders fear that the proposed tariffs will trigger inflation and provoke revenge from US trading partners. Holders of US Treasuries, including China and the European Union, in response, could reduce their share of US assets.
Spot silver fell by 0.2% to reach $16.70 an ounce, after reaching a two-week high. Platinum also dropped by 0.9% to $959.74 an ounce. Palladium was down by 1.2% at $973.72 an ounce. The metal had earlier hit the $971 an ounce mark, its lowest level since Feb. 9.
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