AGE Daily Gold Update

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

2/4/2025: Gold hits new high on tariff fears

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold rose another 0.7% to close at a fresh all-time high above $2,853 as Treasury yields and the dollar fell after China met Trump’s tariffs with its own, escalating a developing trade war. Silver jumped 1.5% to end at $32.89 an ounce.

Retaliating against the Trump administration’s 10% tariffs on a wide array of its exports, China imposed 10% to 15% tariffs on US goods like energy products, agricultural machinery, and automobiles.

Although the new Chinese levies apply to less than 10% of US trade, they signal the rapid escalation of a conflict that could damage each of the world’s largest economies.

At the same time, the White House postponed 25% tariffs on Canada for 30 days, as it did yesterday on Mexico, citing progress in negotiations.

Benchmark 10-year Treasury yields pulled back to the lowest level of the year, hovering above 4.5% as investors sought the perceived safety if US government debt. Falling yields lift gold by decreasing the opportunity cost for holding it instead of bonds.

The dollar plunged more than 1% on trade war fears, boosting gold and other commodities by making them less expensive overseas.

Weak US data added to demand for safe havens. Job opens fell to a four-year low in December, making it harder for unemployed Americans to find work. The number of people collecting unemployment benefits rose to the highest level since 2018, pandemic excluded. And factory orders fell 0.9% in December.

Platinum ended little-changed while palladium dropped 1%.

At the New York spot close: gold gained $19.40 to $2,853.30; silver added 50 cents to $32.89; platinum was flat at $971; and palladium slipped $10.30 to $1,007.70 an ounce.