(Bloomberg) – Gold was changed with a steep collapse on Monday – as traders pressed President Donald Trump's latest tariff threats, while a cloud lies over stock markets due to the world technology rule.
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Bullion traded just above $ 2,740 per ounce after Trump said it would impose tariffs on steel, aluminum and copper imports, without giving details of the size. The Financial Times reported that the Treasury Secretary Scott Bessent was pressing over general tariffs on U.S. imports to start at 2.5% and gradually rise, citing anonymous sources.
Trump said afterwards that he wanted levies across the table which is “much more”. The dollar earned, limiting any demand for a haven upside down for gold.
Traders also monitored the fall of Wall Street in the midst of mounting concerns that a cheap artificial intelligence model of Deepseek's Chinese startup could make valuations in the sector difficult to justify. Bullion fell 1.1% on Monday as traders sold the valuable metal to pay losses in equity, including nearly $ 1 trillion dried from the NASDAQ.
Gold set a series of records in 2024, with earnings driven by the federal reservoir to loose monetary policy, advanced geopolitical tensions, and buying a central bank. The metal may receive a further boost this year from any further rates cuts, and a potential increase in demand for a haven as Trump sprays uncertainty into financial markets. The Fed is making its first interest rate decision of the year in the US on Wednesday.
Fed policy makers are expected to leave rates unchanged, but the market will be interested in the bank's view on growth and inflation given Trump's policies, said Manav Modi, an analyst at Motilal Oswal Financial Services Ltd.
Spot Gold was changed at $ 2,743.03 per ounce at 9:25 am in London, about $ 50 shyly of record. Bloomberg dollar spot index rose for a second day, climbing 0.4%. Silver and platinum fell, Palladium edge higher.
-With the help of Jack Ryan.
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