09:25 AM EST, 02/06/2025 (MT Newswires) -- Gold fell off a record high early on Thursday as the dollar moved higher, though safe-haven demand amid Donald Trump's tariff threats continue to support the metal.

Gold for April delivery was last seen down US$11.80 to US$2,881.20 per ounce after rising to the highest ever a day earlier.

The price of the precious metal has climbed by 9.3% over the past month as the new Trump Administration upsets global trade flows with a 10% tariff on imports from China, threatens to put a 25% charge on imports from Canada and Mexico, the two largest U.S. trading partners, and mulls imposing levies on imports from the European Union.

"While tariffs on China may now be the main focus, the tariff story generally seems likely to continue and expand. We think that gold will benefit both as a diversifier and as a perceived safe haven as a result. Whether as a means to hedge risk or simply as a deserving part of one's portfolio, we think that uncertainty will lead to more gold allocations," Christopher Louney, a commodities strategist at RBC Capital Markets, noted.

The dollar rose following two losing sessions, with the ICE dollar index last seen up 0.42 points to 108.0.

Treasury yields also rose, raising the carrying cost of owning gold. The U.S. two-year note was last seen paying 4.224%, up 2.7 basis points, while the yield on the 10-year note was up 1.5 points to 4.447%