Gold Rallies on Trade Tensions

Gold prices surged to a three-month high as escalating trade tensions between the United States and Canada fueled significant safe-haven demand. Silver and platinum also saw buying interest, though silver later experienced a modest retreat ahead of key US inflation data.

US and Canada Exchange Tariff Threats

Trade relations between the US and Canada deteriorated as the US administration threatened a 50% tariff on Canadian vehicles, prompting Canada to announce $20 billion in retaliatory tariffs on US goods. The escalating dispute is challenging the stability of the USMCA trade agreement and has been cited as a primary driver of risk aversion in financial markets.

Mixed US Economic Data and Fed Focus

Recent economic reports from the US presented a mixed outlook, with a decline in consumer confidence and new home sales contrasting with a slight increase in private-sector hiring. Market attention is now turning to the Federal Reserve's Jackson Hole symposium for policy guidance, particularly after a Fed official noted that further rate hikes may be necessary to control inflation.