09:08 AM EDT, 04/03/2025 (MT Newswires) -- Gold traded lower early on Thursday, falling off a a day-prior record high, as traders move to add liquidity as stock markets plunge after the United States launched a global trade war, imposing broad-based tariffs on most of the country's trading partners.

Gold for June delivery was last seen down US$70.50 to US$3,095.70 per ounce, after rising to a record US$3,166.20 a day earlier.

The drop comes as U.S. President Donald Trump's imposition of broad-based tariffs on U.S. trading partners launched a global trade war. China, Europe, Canada and others are readying retaliatory measures and the fight is likely to slow global growth and raise inflation, which is pushing stock markets down around the world and pressuring investors to sell assets to raise cash.

"Gold trades a tad softer on the day after briefly hitting a fresh record high overnight ... a move that was supported by geopolitical and economic tensions, as well as the weaker USD and rising inflation expectations driving down US real yields. However, while these supportive factors will continue to underpin bullion prices, a current rush to deleverage amid spiking volatility will also be felt in gold," Ole Hansen, head of commodity strategy at Saxo Bank noted.

The dollar plunged early, with the ICE dollar index last seen down 2.25 points to 101.56. Treasury yields were also sharply lower, with the U.S. two-year note last seen paying 3.76%, down 10.3 basis points, while the yield on the 10-year note was down 10.4 points to 4.031%.