WASHINGTON (dpa-AFX) - Gold futures closed higher on Tuesday, recovering after two successive days of losses, as worries about global growth and fears of a potential U.S. recession triggered a sell-off in equities and prompted investors to seek the safe-haven yellow metal.
Tensions between the U.S. and Canada have risen following U.S. President Donald Trump saying that he will double his planned tariffs on steel and aluminum imports from Canada to 50% from 25% as retaliation for the Canadian province of Ontario's 25% tax increase on electricity exports to the US.
Trump also threatened to impose higher tariffs on Canadian car imports.
The dollar's fall to a five-month low contributed significantly to gold's rise. The dollar index dropped to 103.25, losing nearly 0.6%.
Gold futures for March settled higher by $21.90 or about 0.76% at $2,912.90 an ounce.
Silver futures for March closed up $0.613 or about 1.9% at $32.888 an ounce, while Copper futures for March climbed to $4.7305, gaining $0.0910 or nearly 2%.
In economic news, a report released by the Labor Department showed job openings in the U.S. increased by more than expected in the month of January.
The Labor Department said job openings climbed to 7.74 million in January from a downwardly revised 7.51 million in December.
Economists had expected jobless claims to inch up to 7.63 million from the 7.60 million originally reported for the previous month.
Markets now await U.S. reports on consumer and producer price inflation, as well as readings on consumer sentiment and inflation expectations this week for further direction.
Meanwhile, investors now expect the Fed to cut interest rates by 88 basis points this year, compared to earlier expectations for 75 basis points cut, according to LSEG data.
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