Gold fell from near a six-year high as investors weighed the implications of President Donald Trump's latest salvo in the escalating trade conflict with China.
Prices jumped on Thursday and extended the gain Friday before declining as Trump said that he would impose a 10% tariff on a further $300 billion in Chinese imports in a move set to hit American consumers more directly than any other in his trade wars so far. They will come on top of the 25% duty already in place on some $250 billion in Chinese goods and mean that almost all trade with the Asian country will be subject to new taxes.
Spot gold fell 0.9% to $1,432.90 an ounce at 10:11 a.m. in Singapore, after earlier rising to $1,448.40, near the six-year high of $1,453.09 touched on July 19. Prices are heading for a third weekly gain in four. Holdings in bullion-backed exchanged traded funds rose by 6 tons to the highest since April 2013, according to data compiled by Bloomberg.