Gold prices are rising today, Tuesday, in the wake of fears of a world trade war as the new US duties in imports from Canada and Mexico came into force, along with doubling duties in goods from China.

Gold rose 0.2% to $ 2,898.25/ounce, after almost 1% rose on Monday. Future fulfillment contracts rose 0.2% to $ 2,907.90.

“The clear deterioration of global trade relations and the weaker US dollar due to fears of a sudden deceleration of US growth has given the market gold a steady impetus overnight,” a analyst said.

“Markets could drive gold prices to $ 2,700 before the main upward trend continues.”

China immediately responded to Trump duties, with 10% -15% additional duties to some US imports from March 10 and a series of new export restrictions on defined US entities.

Canadian Prime Minister Justin Trinto said Ottawa would respond with 25% direct tariffs to US products worth $ 20.7 billion.

Trump’s duties are widely regarded as inflationary and have led to increased gold flow, with over 10% profits this year.

However, higher inflation in the US can force the federal bank to keep interest rates higher for a longer period, which could reduce gold attractiveness.