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Gold  rises on  Trump announcement of imposing tariffs on Mexico , Canada

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Gold rose after US President Donald Trump announced he would likely impose tariffs on Mexico and Canada early next month, even as he held off from immediately hitting China with import levies.

Bullion added to a modest gain on Monday to trade near $2,725 an ounce — on course for the highest close since early November — as traders weighed the potential implications of US tariffs of as much as 25% against its neighbors. If enacted, the move threatens to spark a trade war.

Gold prices surged to over a two-month high on Tuesday as the U.S. dollar weakened, while the yellow metal was also supported as investors flocked towards it amid uncertainty surrounding Donald Trump’s trade policies.

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Gold prices climbed above $4,250 ahead US ISM Manufacturing PMI release

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US spot Gold prices climbed above $4,250 early Monday, touching a six-week high as investors turned cautious ahead of the upcoming US ISM Manufacturing PMI release. The yellow metal is poised for further upside momentum if it secures a sustained daily close above the crucial $4,250 resistance level.

The US Dollar opened December on a softer note, pressured by rising expectations that the Federal Reserve may announce a rate cut next week. Growing market confidence in easing monetary conditions has boosted the appeal of non-yielding assets such as gold.

Analysts note that a decisive break and close above $4,250 could reinforce bullish sentiment and pave the way for an extended rally in the days ahead. As global markets await fresh cues from the US economic calendar, gold continues to benefit from a favorable macroeconomic backdrop and robust safe-haven demand.

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