Gold held steady near a record high as President Donald Trump's tariff threats and subsequent delays raised uncertainty and supported higher demand for the precious metal.

Bullion hit an all-time peak above $2,830 an ounce on Monday before paring gains to close up 0.6% after Trump said he would temporarily suspend 25% levies on Canada and Mexico for a month. The abrupt change sent the dollar retreating from its highest level in more than two years, making the precious metal cheaper for most buyers.

There is still much uncertainty in the market about what will happen, tempering gold's appeal as a store of value in an unpredictable environment. Washington is set to impose 10% tariffs on Chinese imports starting Tuesday in the U.S., though Trump has said he will talk to Beijing about the proposed duties. Among the biggest questions are how resilient the U.S. economy is to a trade war — if it materializes — and the ripple effects for monetary policy if tariffs reignite inflation. The Federal Reserve paused interest rate cuts last month, adopting a "wait and see" approach to the new administration's policies.

Spot gold fell 0.1% to $2,813.37 an ounce as of 8:14 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.2% after rising 1.1% over the previous six sessions. Silver slipped, while platinum and palladium rose.

Trade war fears had been roiling precious metals markets even before the turmoil over the past few days. U.S. gold and silver prices have surged above international benchmarks in recent weeks, sending traders and dealers rushing to bring large amounts of the metal into the U.S. before any tariffs are imposed. The turmoil has also led to a surge in gold and silver rental rates — the profits that holders of bullion in London vaults can make by lending out the precious metals on a short-term basis.

Source: Bloomberg