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LONDON. — Gold prices eased slightly yesterday as the dollar held near a one-week high on worries over an escalation in trade conflicts between the United States and its trading partners.

A firmer US currency makes dollar-priced gold more expensive for holders of other currencies, potentially sapping demand. Safe-haven demand for gold has this year been overshadowed by the metal’s relationship with the greenback.

US President Donald Trump said on Saturday that there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with negotiations or he would terminate the trilateral trade pact, which also includes Mexico. Meanwhile, Bloomberg News reported that Trump was prepared to ramp up a trade war with China and had told aides that he was ready to impose tariffs on $200 billion more in Chinese imports as soon as a public comment period on the plan ends on Thursday.

“For as long as the trade war fears that are helping dollar strength continue, gold is going to come under pressure,” said ETF Securities commodity strategist Nitesh Shah.
Gold prices are down about 8 percent this year against a backdrop of rising US interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in US dollar. — Reuters.