Gold Holds Gain as Trade War Prospects Stoke Demand for Havens

Gold was steady after China imposed its own levies on US farm goods in retaliation against the Trump administration’s tariffs policies, deepening concerns over the prospect of a global trade war that may boost demand for haven assets, Bloomberg reported.

Bullion traded near $2,890 an ounce — following a 1.2% increase on Monday — as Beijing announced 15% duties on some American farm goods, including cotton. That came after Trump signed an order doubling levies on China, as well as delivering on his threat to hit Canada and Mexico with sweeping import duties. Geopolitical events were also in the spotlight, after a senior defense official said the US was pausing all military aid to Ukraine.

After reaching a record high of just over $2,950 an ounce on Feb. 24, gold had its first weekly of decline of 2025 at the end of February, mainly driven by profit taking. Goldman Sachs Group Inc. analysts last month said that elevated policy uncertainty — including tariff fears — could help push gold prices as high as $3,300 an ounce by year-end.

Meanwhile, soft manufacturing data added to a slew of disappointing US indicators in recent weeks that point to weaker housing, rising unemployment claims and a drop in personal spending. The reports have boosted wagers on Federal Reserve interest-rate cuts later this year — a scenario that also tends to add to bullion’s appeal as a non-yielding asset.

Spot gold was steady at $2,890.31 an ounce at 1:52 p.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and platinum were little changed, while palladium fell.