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Gold hits new record high of $2,800 after Trump imposes tariffs

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).
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