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(Bloomberg) -- Gold rose to near a record high as the dollar fell after President Donald Trump signaled a less aggressive approach to China.

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Bullion traded near $2,770 an ounce, the highest since October when it posted the previous all-time high. Trump said he’d “rather not have to use” levies against China, in an interview that aired on Fox News on Thursday in the US. A gauge of the dollar fell as much as 0.3%, making the precious metal cheaper for most buyers.

Gold is up almost 3% this week, mainly on haven demand amid uncertainty over the global economic outlook under the new US administration. Beyond the immediate dollar-related move on Friday, a more dovish approach from Trump to China would likely be negative for gold, which could curb haven demand.

Traders have been glued to Trump’s commentary on trade and tariffs since he took office. The president has identified China, the EU, Canada and Mexico as potential targets for import levies, raising concerns about how other governments might respond. Earlier, Trump told attendees at the World Economic Forum in Davos via video that he intends to hit Europe with import levies in a bid to bring manufacturing back to the US.

The president also said he would demand an immediate drop in US interest rates. While lower borrowing costs are typically bullish for precious metals, traders were cautious as monetary policy is set by the Federal Reserve alone. The central bank is due to make a rate decision next week.

Gold set a series of records last year, with gains driven by the Fed’s pivot to cutting interest rates, geopolitical tensions and central-bank buying. Traders are now also focusing on Trump’s domestic agenda, including his pledges to cut taxes and overhaul immigration. Such moves may erode the nation’s finances and reignite inflation, potentially complicating the Fed’s rate-cutting path.

Spot gold rose 0.7% to $2,773.29 an ounce at 11:45 a.m. in Singapore, not far short of its record of $2,790.10 an ounce. Silver, palladium and platinum all gained.

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