Gold prices fell in early Asian hours on Monday, pressured by a stronger dollar as fears of a global trade war mounted after U.S. President Donald Trump imposed sweeping tariffs on Canada, Mexico and China over the weekend.

FUNDAMENTALS

* Spot gold dipped 0.6% to $2,784.84 per ounce by 0113 GMT. U.S. gold futures fell 0.3% to $2,825.80.

* The U.S. dollar index hovered near a three-week peak, making greenback-priced gold more expensive for foreign buyers. [USD/]

* Trump levied 25% tariffs on imports from Canada and Mexico and 10% on goods from China starting on Tuesday.

* Canada and Mexico ordered retaliatory measures to Trump's 25% tariffs, which promise to jolt the economies of all three countries, while China said it would challenge tariffs at the World Trade Organization and take unspecified countermeasures.

* Trump's tariff plans are widely perceived as inflationary, which could drive up safe-haven demand for bullion as it is traditionally seen as a hedge against price pressures and geopolitical uncertainty.

* About 12.9 million troy ounces of gold have been delivered to COMEX-approved warehouses, the highest since July 2022 as investors flock to the safe-haven asset.

* Meanwhile, COMEX gold speculators cut net long position by 3,766 contracts to 230,592 in the week to Jan. 28. [CFTC/]

* Gold was also weighed down by some profit-booking after prices surpassed the key $2,800 mark for the first time last week, hitting an all-time high at $2,817.23. [GOL/]

* Spot silver dropped 1.2% to $30.94 per ounce, platinum shed 1.1% to $967.20, and palladium was 0.5% lower at $1,003.26.

Courtesy: ET