US President said Mexico and Canada are getting slapped with 25% tariffs on Saturday. It’s good news for gold.
🧈 Gold Jumps on Tariff Fears
- Gold prices XAUUSD jumped to a fresh record high late Thursday after President Trump confirmed his intentions to impose a hefty 25% tariff on imports from Canada and Mexico (oil could get a pass, though). Tariffs timeline? It’s all starting on Saturday, February 1.
- And that explains gold’s sudden surge to record levels — traders and investors rushed to scoop up the precious metal as a way to protect their portfolios from potential trade wars and geopolitical tensions.
🏆New Record at $2,800
- Bullion prices hit the never-before-seen $2,800 mark, up 1.5% from Thursday’s session low of $2,757 per ounce. Early Friday prices had given back some of that advance and were gravitating toward $2,790. With that push, gold surpassed its previous record of $2,790 set in late October.
- It’s still unclear whether the proposed tariffs will apply to gold as it has historically been exempt from import duties. This uncertainty is another reason for the pump.
✨ Fed, Rates and Opportunity Cost
- The elevated demand for gold is happening right after the Federal Reserve on Wednesday held interest rates steady. The central bank’s chief, Jay Powell, struck a cautious note on further rate cuts saying that inflation has been a rising worry for Fed officials.
- Lower rates generally benefit gold because it’s a non-yielding asset, meaning that when rates move lower they reduce the opportunity cost of holding gold (because fixed-income assets return less).
- Union Budget 2025: Is Indian stock market open or closed on Saturday (February 1)?
- US Fed meeting: No change in rates, US markets fall after announcement
- US Fed Meeting Live: The US Federal Reserve will Announce its first policy decision today at the two-day Federal Open Market Committee (FOMC) meeting
- Gold Price Today: Yellow Metal Makes New High, Crosses Rs 80,730/10gms mark
- Inox Wind shares surge 20% on strong sales