Gold eased lower to around $2,795 at the opening of the week as the yellow metal faced pressure from a stronger dollar after President Donald Trump imposed tariffs last weekend.
At 9.15am, gold was at $2,783.27, down 0.56% since it opened early Monday in Asian trading.
Last Saturday, Canada and Mexico were informed that the United States (US) would impose a 25% tariff while China would be set at 10%. Canada's energy trade sector was only subject to a 10% tariff.
The tariffs came into effect on Tuesday.
However, Canada, Mexico and China have promised to retaliate against Donald Trump's announced export tariff hikes, potentially dragging down gold prices.
Canadian Prime Minister Justin Trudeau wasted no time in announcing a 25% tariff retaliation on the US over the weekend, sparking risk-on sentiment.
Looking ahead to the Federal Reserve (Fed) policy cycle, market demand for safe-haven assets is driven by uncertainty and concerns over global economic growth as well as robust central bank gold purchases.
Gold surged as much as 2% last week as market players sought refuge in safe-haven assets amid concerns over rate cuts.
