(Bloomberg) -- Gold fell as the dollar jumped after President-elect Donald Trump threatened import tariffs of 25% on Canada and Mexico.

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Trump said the import taxes were necessary to clamp down on migrants and illegal drugs flowing across US borders, while also vowing an additional 10% tariff on Chinese goods. A stronger dollar reduces the allure of gold as it makes it more expensive for many buyers.

Bullion traded near $2,620 an ounce after slumping 3.4% in the previous session on a deescalation of tensions in the Middle East that sapped haven demand. Israel’s security cabinet is expected to vote on a cease-fire agreement with Lebanon’s Hezbollah on Tuesday, and passage is considered likely, according to an Israeli official.

The precious metal has still climbed more than 25% this year, supported by central bank purchases and the Federal Reserve’s pivot to rate cuts. Many analysts remain positive on the outlook, with Goldman Sachs Group Inc. and UBS seeing further gains in 2025.

“Investors are increasingly pricing in a ‘Golden Age’ of America with pro-market — and pro crypto — cabinet picks while the US debt and deficit story is being pushed out,” said Nicky Shiels, head of metals strategy at Geneva-based MKS PAMP SA. “Gold should revert to $2500, not $3000, in the short term.”

Spot gold fell 0.1% to $2,621.45 an ounce as of 8:29 a.m. in Singapore after being down as much as 0.8% earlier. The Bloomberg Dollar Spot Index rose 0.5%, after declining 0.5% in the previous session. Silver, platinum and palladium all edged lower.

Investors are now focusing on the Fed’s rate meeting next month, with several reports this week that may provide clues on the decision. These include minutes of the central bank’s November meeting, consumer confidence and personal consumption expenditure data — the monetary authority’s preferred gauge of inflation.

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