WASHINGTON (dpa-AFX) - Gold prices advanced on Tuesday as new U.S. tariffs threatened to escalate global trade tensions.
Uncertainty about prospects of peace in Ukraine and signs of a weakening U.S. economy also buoyed safe-haven demand for bullion.
Spot gold jumped 0.8 percent to $2,916.31 per ounce in European trade while U.S. gold futures were up 0.9 percent at $2,926.50.
In response to new U.S. tariffs, Canada announced 25 percent tariffs on $107 billion worth of U.S. goods, with $20.7 billion in immediate effect. Mexican President Claudia Sheinbaum said her country is preparing countermeasures.
China has announced 15 percent tariffs on U.S. chicken, wheat, corn and cotton, plus 10 percent cent tariffs on soybeans, pork, beef and dairy beginning March 10.
It is feared that U.S. President Donald Trump's 'tariffs on steroids' agenda may keep inflation higher and could tip the global economy into recession.
Meanwhile, in another significant development, the Trump administration said it is temporarily suspending all military aid to Ukraine and the aid would not resume until President Trump determined that Ukraine had demonstrated a commitment to peace negotiations with Russia.
The order takes effect immediately and affects more than $1 billion in arms and ammunition in the pipeline and on order.
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