Early on Tuesday, gold prices are edging higher, close to a weekly high after US President Donald Trump’s unexpected decision to impose tariffs on steel and aluminum imports from Brazil and Argentina with immediate effect. At the time of writing, GOLD is trading at a little above $1,461.

In a shocking move, Trump announced these tariffs in retaliation to devaluation of the South America nations’ currencies which was making it hard for US food exports to compete with cheaper exports from such regions. Both Brazil and Argentina have taken active measures to prevent further weakness in their currencies, which have slid lower as a result of political and economic crises.

Gold has also been boosted after the US dollar weakened following the release of ISM Manufacturing PMI figures from the US on Monday. The data revealed that the manufacturing sector in the US contracted for the fourth consecutive month during November, while new orders fell to the lowest level in around seven years.

On the US-China trade front, Trump admitted on Monday that his decision to sign laws supporting the human rights of anti-government protesters in Hong Kong had caused a strain in ties. However, he remained optimistic that China was still keen to sign a trade agreement with the US.