Gold rose above $2,720 per ounce on Tuesday, extending gains from the previous session as investors remain focused on the potential impact of U.S. President Donald Trump's policies during his second term. Trump said he may impose 25% tariffs on Mexico and Canada starting early next month, though he did not provide a timeline for China tariffs. These tariffs, if enacted, could trigger a trade war, heightening demand for safe-have assets like gold. Simultaneously, investors are weighing inflation risks, as Trump’s agenda of tax cuts and increased government spending could intensify price pressures, potentially limiting the Federal Reserve's ability to ease monetary policy and diminishing gold's appeal. On the geopolitical front, traders are closely monitoring the effects of a long-delayed ceasefire agreement between Israel and Hamas.
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