AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

2/3/2025: Gold rises to new record

Source: Bill Musgrave, American Gold Exchange

Austin — Extending January’s 7% surge, New York spot gold gained another 0.8% to close at a new all-time high near $2,834 on flights to safety after President Trump imposed massive tariffs on Canada, Mexico, and China over the weekend. Silver also added 0.8% to finish at $32.39 an ounce.

Tariffs of 25% were levied against Mexico and Canada, with 10% on China, stoking concerns about inflation and trade wars. The rationale given was to pressure those government into preventing immigrants and fentanyl from crossing into the US.

Canada quickly responded with 25% tariffs on US products, many of which come from primarily Republican-controlled states. The tariffs on Mexico were almost immediately delayed for a month after a deal was reportedly struck to bring Mexican national guard units to the border. The Trump administration said Europe is next.

The ISM warned today that the aggressive tariffs could derail the recovery of the struggling US manufacturing sector if nations retaliate by raising tariffs on US goods. Manufacturing expanded in December for the first time in 27 months.

Benchmark 10-year Treasury yields fell to just above 4.5% as investors sought the perceived safety of government debt. Lower yields boost gold by reducing the opportunity cost for holding it instead of bonds.

The dollar gained 0.4 % as forex traders speculated that the tariffs could prevent the Fed from cutting interest rates as deeply as planned.

Platinum lost 1.4% while palladium was little changed.

At the New York spot close: gold gained $21.40 to $2,833.90; silver climbed 26 cents to $32.39; platinum shed $11.65 to $971; and palladium was virtually unchanged at $1,017 an ounce.