Gold hovered below $2850 in Asia, staying close to its record high as escalating trade tensions drove safe-haven demand. Domestic bullion futures surged past Rs 83000 per 10 grams, reflecting investor caution. China hit back with retaliatory tariffs after Trump's 10% levy on Chinese imports took effect, heightening market uncertainty. Meanwhile, Trump delayed the planned 25% tariffs on Mexico and Canada for a month after securing commitments on border security and drug trafficking. The dollar index touched 109.75 yesterday as traders closely watched the trade war's fallout, which could fuel inflation and limit the Federal Reserve's ability to cut rates. Investors are also awaiting Friday's nonfarm payrolls report for fresh signals on US economic strength and future Fed policy. With inflation risks mounting, gold's appeal as a hedge remains strong, keeping prices near record levels.
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