Gold Steadies Near $2,800 as Tariffs Spark Safety Rush

Gold recovered from early losses to trade near $2,800/oz as safe-haven demand from Trump’s new tariffs offset pressure from a stronger dollar.

Despite initially dropping over 1%, prices stayed close to Friday’s record high of $2,817.23 as investors sought protection from potential trade war impacts. Analysts expect gold to reach $2,850 in coming months amid growing economic uncertainty.

The market’s concern over retaliatory measures from affected nations, including Canada’s counter-tariffs on $107 billion of US goods and China’s promised WTO challenge, has maintained gold’s appeal despite dollar strength reaching three-week highs. While J.P. Morgan warns of potential near-term pressure from equity market contagion, analysts remain bullish on gold’s medium-term prospects, with UBS projecting a rise to $2,850/oz.