Gold prices are holding steady near record highs as markets grapple with opposing forces: escalating trade tensions driving safe-haven demand versus a surging dollar dampening buying interest. Trump’s announcement of tariffs (25% on Canada/Mexico, 10% on China) has triggered global retaliation threats and market uncertainty, typically positive for gold. However, the dollar’s jump to two-year highs is offsetting these supportive factors, as a stronger dollar makes gold more expensive for foreign buyers. The trade war’s impact is already visible in precious metals markets, with U.S. gold and silver prices trading above international benchmarks as traders rush to move metal before tariff implementation. While gold’s safe-haven status typically shines during global uncertainty, analysts note that higher interest rates from tariff-driven inflation could pose headwinds for the non-yielding metal. Despite these challenges, gold has maintained its upward trajectory, rising 7% this year after 2024’s substantial 27% gain.